The Reserve Bank of India released the RBI underwriting auction results for July 24, 2026. The auction covered Additional Competitive Underwriting (ACU) for two government securities. Primary Dealers participated in setting the underwriting commission cut-off rates for both instruments.
Key Details of the RBI Underwriting Auction
The first security, a new Government Security maturing in 2041, carried a notified amount of ₹17,000 crore. The Minimum Underwriting Commitment (MUC) stood at ₹8,505 crore. Additionally, the ACU amount accepted reached ₹8,495 crore, bringing the total underwritten amount to ₹17,000 crore. The ACU commission cut-off rate was set at 0.74 paise per ₹100.
The second security, the 7.43% Government Security maturing in 2076, had a notified amount of ₹11,000 crore. Its MUC amount was ₹5,502 crore. As a result, the ACU amount accepted came to ₹5,498 crore, covering the full ₹11,000 crore. However, the cut-off rate for this longer-tenure bond was slightly higher at 0.98 paise per ₹100.
What This Means for Primary Dealers and the Bond Market
Both securities were fully underwritten, which signals strong participation from Primary Dealers. Therefore, the government’s borrowing programme for these securities faces no shortfall risk. The RBI conducted the actual sale auction for both securities on the same day, July 24, 2026.
The higher commission rate on the 2076 bond reflects the greater risk Primary Dealers take on longer-tenure paper. Meanwhile, the 2041 security attracted a lower rate, suggesting relatively easier market absorption. For example, such outcomes often indicate healthy demand at the shorter end of the long-duration curve.
These underwriting auctions are a routine but critical part of India’s government securities market. They ensure that the RBI’s notified borrowing amounts are fully covered, even if market demand falls short during the main auction. Additionally, they help Primary Dealers manage their underwriting risk through a competitive bidding process.
Source: RBI Press Releases
