RBI to Conduct ₹32,000 Crore Underwriting Auction for Government Securities
RBI announces underwriting auction for govt securities of Rs 32,000 cr
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The Reserve Bank of India (RBI) is set to conduct an underwriting auction for the re-issue of government securities amounting to ₹32,000 crore on May 22, 2026. This auction includes securities maturing in 2029, 2033, and 2055, with specific minimum underwriting commitments for primary dealers.
- 01The auction will include ₹11,000 crore for both the 6.03% GS 2029 and 6.68% GS 2033 securities, and ₹10,000 crore for the 7.24% GS 2055 bonds.
- 02Minimum Underwriting Commitment (MUC) for the 2029 and 2033 securities is ₹262 crore per Primary Dealer.
- 03For the GS 2055 bonds, the MUC is set at ₹239 crore per Primary Dealer.
- 04Bids must be submitted electronically through the RBI's e-Kuber system between 09:00 A.M. and 09:30 A.M. on the auction day.
- 05The underwriting commission will be credited to the accounts of the Primary Dealers on the issue date of the securities.
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The Reserve Bank of India (RBI) plans to conduct an underwriting auction on May 22, 2026, for the re-issue of government securities totaling ₹32,000 crore. This auction will feature three securities: the 6.03% GS 2029 and 6.68% GS 2033, each with a notified amount of ₹11,000 crore, and the 7.24% GS 2055 bonds, which will raise ₹10,000 crore. The Minimum Underwriting Commitment (MUC) for the 2029 and 2033 securities is set at ₹262 crore per Primary Dealer, while the MUC for the 2055 bonds is ₹239 crore. Primary Dealers are required to submit their bids electronically via the RBI's Core Banking Solution, known as the e-Kuber system, during a designated window from 09:00 A.M. to 09:30 A.M. on the auction day. The underwriting commission will be credited to the respective accounts of Primary Dealers on the securities' issue date, ensuring a streamlined settlement process for participants.
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This auction allows Primary Dealers to participate in government financing, potentially influencing market liquidity and interest rates.
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