The Reserve Bank of India announced the results of its RBI underwriting auction held on July 10, 2026. The auction covered Additional Competitive Underwriting (ACU) for two government securities. Primary Dealers participated in the process to underwrite these bonds.
Key Details of the RBI Underwriting Auction
The first security, the 6.36% GS 2031, carried a notified amount of ₹21,000 crore. The Minimum Underwriting Commitment (MUC) stood at ₹10,500 crore. Additionally, the ACU amount accepted was ₹10,500 crore, bringing the total underwritten amount to ₹21,000 crore. The RBI set the ACU commission cut-off rate at 0.27 paise per ₹100.
The second security, the 7.71% GS 2066, had a notified amount of ₹11,000 crore. However, the MUC and ACU amounts differed slightly — ₹5,502 crore and ₹5,498 crore respectively. Together, they covered the full ₹11,000 crore. The ACU commission cut-off rate for this bond was set at 0.66 paise per ₹100.
What This Means for Primary Dealers and the Bond Market
Primary Dealers play a crucial role in India’s government securities market. They underwrite bond auctions, therefore ensuring the government raises funds smoothly. The RBI uses the ACU mechanism to distribute underwriting risk more efficiently among these dealers.
The higher cut-off rate of 0.66 paise for the longer-tenure 2066 bond reflects its relatively higher risk. Meanwhile, the shorter 2031 bond attracted a lower rate of 0.27 paise. As a result, dealers earn commission based on the accepted cut-off rates for their respective bids.
The actual auction for the sale of both government securities also took place on July 10, 2026. For example, investors and market participants could track the final allotment outcomes separately. This process, therefore, supports the RBI’s broader objective of managing government borrowings in an orderly manner.
The RBI underwriting auction results signal continued market confidence in India’s sovereign debt instruments. Both securities were fully underwritten, which is a positive indicator for the bond market. Additionally, complete coverage suggests healthy Primary Dealer participation in this round.
Source: RBI Press Releases
