The Reserve Bank of India will conduct a government securities auction worth ₹28,000 crore on June 25, 2026. This RBI G-Sec auction involves the re-issue of two securities and requires Primary Dealers to fulfil underwriting commitments. The auction will take place on a Thursday through the e-Kuber system.
Key Details of the RBI G-Sec Auction
The Government of India has announced the sale of two securities in this auction. The first is the 6.68% GS 2040, with a notified amount of ₹17,000 crore. The second is the 7.43% GS 2076, carrying a notified amount of ₹11,000 crore. Together, these two securities make up the total ₹28,000 crore offering.
Each Primary Dealer (PD) carries a Minimum Underwriting Commitment (MUC). For the 6.68% GS 2040, the MUC per PD stands at ₹405 crore. Meanwhile, for the 7.43% GS 2076, each PD must commit ₹262 crore. Additionally, the minimum bidding commitment under the Additional Competitive Underwriting (ACU) auction mirrors these MUC amounts exactly.
The RBI will use a multiple price-based method for the underwriting auction. Therefore, PDs who bid higher premiums may receive larger allotments. This method ensures competitive pricing and efficient market discovery.
How Primary Dealers Can Participate
Primary Dealers must submit their ACU auction bids electronically through RBI’s Core Banking Solution, the e-Kuber system. Importantly, the bidding window opens at 9:00 AM and closes at 9:30 AM on June 25, 2026. As a result, PDs have a narrow 30-minute window to place their bids accurately.
The RBI will credit underwriting commissions directly to each PD’s current account on the day the securities are issued. This ensures prompt settlement and reduces counterparty risk. However, PDs must ensure their bids comply with the extant underwriting scheme notified on November 14, 2007.
Why This Auction Matters for the Bond Market
Government securities auctions are a core tool for sovereign borrowing in India. For example, the 7.43% GS 2076 is a long-dated bond, reflecting the government’s strategy to lock in long-term funding. Additionally, the 6.68% GS 2040 offers medium-term exposure for institutional investors. As a result, both securities attract significant interest from banks, insurers, and provident funds.
This auction also signals continued government borrowing activity in the first half of FY2026-27. Investors and market participants should therefore monitor the cut-off yields closely after the auction concludes.
Source: RBI Press Releases
