The Reserve Bank of India will conduct a government securities auction worth ₹34,000 crore on July 3, 2026. This RBI G-Sec auction involves the re-issue of the 6.94% Government Security maturing in 2036. Primary Dealers across India must prepare to meet their underwriting commitments on that date.
Key Details of the RBI G-Sec Auction
The Government of India has notified specific underwriting obligations for each Primary Dealer (PD). Each PD carries a Minimum Underwriting Commitment (MUC) of ₹810 crore. Additionally, the minimum bidding commitment under the Additional Competitive Underwriting (ACU) auction is also ₹810 crore per PD.
The underwriting auction will follow a multiple price-based method. Therefore, different PDs may receive different commission rates based on their bids. This approach encourages competitive participation among Primary Dealers.
PDs must submit their ACU bids electronically through RBI’s e-Kuber system. The bidding window opens at 9:00 AM and closes at 9:30 AM on July 3, 2026. As a result, dealers must ensure their systems are ready well in advance.
What This Means for Primary Dealers and Markets
The underwriting commission will be credited directly to each PD’s current account with RBI. This credit happens on the same day the security is issued. However, dealers must successfully complete their bidding obligations to qualify for the commission.
Meanwhile, this auction reflects the government’s ongoing borrowing programme for the fiscal year 2026-27. The 6.94% GS 2036 is a long-term bond, meaning it matures roughly a decade from now. For example, institutional investors often prefer such instruments for portfolio stability.
This sale also signals continued demand management in India’s government bond market. The RBI uses these auctions to manage liquidity and fund government expenditure efficiently. Therefore, the outcome of this auction will be closely watched by bond market participants.
Source: RBI Press Releases
