RBI Launches Mega Underwriting Auction: Primary Dealers Target ₹28,000 Crore in Government Securities Sale on June 25
The Reserve Bank of India (RBI) has announced a major underwriting auction for the sale of Government Securities (GS). The auction is scheduled for Thursday, June 25, 2026. This significant event provides Primary Dealers (PDs) an opportunity to participate in the re-issue of high-rated government instruments.The total value of the securities available through this underwriting auction stands at ₹28,000 crore. The sale is conducted under the extant scheme of underwriting commitment, which was first notified on November 14, 2007.
Detailed Breakdown of Government Securities Offerings
Two specific tranches of government securities are being offered in the auction. These securities cater to varying market needs and include different maturity profiles for investment planning.The offering includes the 6.68% GS 2040, with a total notified amount set at ₹17,000 crore. The 7.43% GS 2076 tranche carries a notified amount of ₹11,000 crore.
Commitment Requirements for Primary Dealers (PDs)
The auction requires Primary Dealers to meet specific commitment thresholds regarding the sale and underwriting commitment. These commitments are defined as per standard operating procedures set by the RBI.For the 6.68% GS 2040 tranche, the Minimum Underwriting Commitment (MUC) applicable to each PD is set at ₹405 crore. Similarly, for the 7.43% GS 2076 security, the required MUC per PD is specified as ₹262 crore.
Auction Mechanism and Procedural Details
The underwriting auction will be executed through a multiple price-based method. This systematic approach ensures transparency and fairness in the issuance process for all participants.Primary Dealers are instructed to submit their bids electronically. Bidding must take place via the Reserve Bank of India Core Banking Solution (e-Kuber system). The designated bidding window is set between 09:00 A.M. and 09:30 A.M. on June 25, 2026.
The underwriting commission related to these securities will be credited directly. This commission will be transferred to the current account of the respective PDs by RBI upon the issuance of the securities.
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