The Reserve Bank of India conducted a government securities underwriting auction on July 17, 2026. The RBI set cut-off commission rates for Primary Dealers across three securities. Additionally, the auction covered a total notified amount of ₹32,000 crore.
Key Details of the Government Securities Underwriting Auction
The RBI accepted Additional Competitive Underwriting (ACU) bids for three government securities. For the 6.03% GS 2029, the notified amount was ₹11,000 crore. The ACU commission cut-off rate was set at 0.44 paise per ₹100. As a result, the total amount underwritten reached the full ₹11,000 crore.
The 6.68% GS 2033 also carried a notified amount of ₹11,000 crore. However, its ACU commission cut-off came in lower at 0.34 paise per ₹100. Meanwhile, the Minimum Underwriting Commitment (MUC) stood at ₹5,502 crore, and ACU accepted amounted to ₹5,498 crore.
For the 7.24% GS 2055, the notified amount was ₹10,000 crore. This long-tenor security attracted the highest cut-off rate of 0.62 paise per ₹100. Therefore, it reflected stronger demand for underwriting support on longer-dated bonds.
What This Means for Primary Dealers and Markets
Primary Dealers play a critical role in the government securities underwriting auction process. They commit to absorbing unsold portions of government bond issuances. This mechanism, therefore, helps the RBI ensure smooth and complete absorption of its borrowing programme.
The ACU process allows Primary Dealers to bid competitively beyond their mandatory MUC obligations. For example, in this auction, ACU amounts closely matched MUC amounts across all three securities. This indicates active participation and healthy demand from Primary Dealers.
Additionally, the sale auction for all three securities was also held on July 17, 2026. The RBI regularly conducts such auctions as part of its market borrowing calendar. These results, as a result, provide useful signals about bond market sentiment and liquidity conditions in India.
Source: RBI Press Releases
