The Reserve Bank of India has announced a government securities auction worth ₹34,000 crore on September 25, 2026. This RBI G-Sec auction involves the re-issue of the 6.94% GS 2036 bond. Primary Dealers across India must prepare their bids carefully before the deadline.
Key Details of the RBI G-Sec Auction
The security on offer is the 6.94% GS 2036, with a notified amount of ₹34,000 crore. Each Primary Dealer (PD) carries a Minimum Underwriting Commitment (MUC) of ₹810 crore. Additionally, each PD must meet a minimum bidding commitment of ₹810 crore under the Additional Competitive Underwriting (ACU) auction.
The underwriting auction follows a multiple price-based method. This approach means every successful bidder pays their own quoted price. As a result, competitive pricing becomes critical for PDs looking to manage their underwriting costs efficiently.
PDs must submit ACU bids electronically through RBI’s e-Kuber system. The bidding window opens at 9:00 AM and closes at 9:30 AM on September 25, 2026. Therefore, dealers have a narrow 30-minute window to place their bids accurately.
What This Means for Primary Dealers and the Market
RBI will credit underwriting commissions directly to each PD’s current account on the day the security is issued. This ensures prompt settlement and smooth cash flow for participating dealers. Meanwhile, the broader bond market will watch the auction closely for demand signals.
The extant underwriting scheme, notified on November 14, 2007, continues to govern these commitments. However, PDs must ensure full compliance with both MUC and ACU requirements. Failing to meet these thresholds can attract regulatory scrutiny from the Reserve Bank.
For example, this auction reflects the government’s ongoing borrowing programme for the fiscal year 2026-27. Such auctions help the government raise funds for public expenditure without disrupting the broader financial system. As a result, they remain a cornerstone of India’s debt management strategy.
Investors and market participants should monitor the cut-off yield emerging from this auction. It will offer valuable cues about near-term interest rate expectations. Additionally, strong PD participation generally signals healthy market confidence in government paper.
Source: RBI Press Releases
