The Government of India has announced a government securities switch auction worth ₹30,000 crore (face value), scheduled for July 20, 2026. This conversion exercise allows the government to swap shorter-maturity bonds for longer-tenure securities. As a result, it helps manage the sovereign debt repayment calendar more effectively.
Key Details of the G-Sec Switch Auction
Eight source securities will participate in the government securities switch auction on July 20. These include bonds maturing between 2027 and 2030, such as the 6.79% GS 2027 and the 7.88% GS 2030. The government will exchange these for destination securities with maturities extending up to 2039, including the 7.62% GS 2039.
The individual swap amounts range from ₹2,000 crore to ₹5,000 crore per security. For example, ₹5,000 crore of the 7.06% GS 2028 will switch into the 7.62% GS 2039. Additionally, ₹5,000 crore of the 7.10% GS 2029 moves into the 6.64% GS 2035. The total across all eight pairs adds up to ₹30,000 crore.
Market participants must submit bids on the RBI’s e-Kuber platform between 10:30 AM and 11:30 AM on July 20, 2026. The auction follows a multiple-price format, meaning each successful bidder gets allotment at their own quoted price. Settlement will occur on July 21, 2026, on a T+1 basis.
How Bidding Works and What It Means for Markets
Participants must quote both the source and destination security prices in Indian rupees, up to two decimal places. The price of the source security must match the FBIL closing price from the previous working day. However, bids that deviate from this price will be rejected outright.
The minimum bid size is ₹10,000, with multiples of ₹10,000 thereafter. The government reserves the right to accept less than the notified amount or reject any bids without assigning a reason. Therefore, participants should plan their bids carefully within their actual holdings.
The switch ratio — the price of the source security divided by the destination security price — determines how much of the new bond a participant receives. This ratio is rounded off to eight decimal places. Meanwhile, any odd amounts below ₹10,000 will be notionally allotted and bought back at the quoted price.
This operation is broadly cash-neutral, though minor fund settlements will cover net accrued interest differences. For technical support, participants can contact the RBI’s Core Banking Operations Team at 022-69870466 or the IDMD auction team at 022-22702431.
Source: RBI Press Releases
