The Reserve Bank of India will conduct a government securities auction worth ₹28,000 crore on July 24, 2026. This RBI G-Sec auction involves the sale and re-issue of two securities through a competitive underwriting process. Primary Dealers play a central role in making this auction successful.
Key Details of the RBI G-Sec Auction
The auction covers two securities. First, a New Government Security maturing in 2041, with a notified amount of ₹17,000 crore. Second, the 7.43% GS 2076, offered at ₹11,000 crore. Together, these two securities make up the total ₹28,000 crore offering.
Each Primary Dealer must meet a Minimum Underwriting Commitment (MUC). For the New GS 2041, the MUC per Primary Dealer stands at ₹405 crore. Meanwhile, for the 7.43% GS 2076, the MUC is ₹262 crore per dealer. The same amounts apply as the minimum bidding commitment under the Additional Competitive Underwriting (ACU) auction.
The underwriting framework follows the scheme notified by RBI on November 14, 2007. Additionally, the ACU auction will use a multiple price-based method. This approach ensures competitive and transparent price discovery.
How Primary Dealers Can Participate
Primary Dealers must submit their ACU bids electronically on July 24, 2026. They can do so through RBI’s Core Banking Solution platform, known as the e-Kuber system. However, the bidding window is narrow — open only between 9:00 AM and 9:30 AM on that day.
Therefore, dealers must prepare their bids well in advance to avoid missing the window. As a result, timely participation is critical for institutions that wish to earn underwriting commissions. RBI will credit the underwriting commission directly to each Primary Dealer’s current account on the day the securities are issued.
What This Means for the Bond Market
This auction is part of the Government of India’s ongoing market borrowing programme for 2026-27. For example, long-duration securities like the GS 2076 reflect the government’s strategy to lock in long-term funding. Additionally, the new 2041 paper adds fresh supply to the medium-to-long segment of the yield curve.
Investors and market participants should watch the cut-off yields closely. The results will signal market appetite for government paper at current interest rate levels. Overall, this auction offers useful insights into the current state of India’s bond market.
Source: RBI Press Releases
