RBI To Auction Rs 28,000 Crore Worth Of Government Securities On June 25

The Reserve Bank of India (RBI) has announced the auction of two Government of India dated securities worth Rs 28,000 crore. The auction will be conducted on June 25, 2026, while settlement of successful bids will take place on June 29.

According to the RBI, the government will re-issue two existing securities. These include the 6.68 per cent Government Security (GS) 2040 with a notified amount of Rs 17,000 crore and the 7.43 per cent GS 2076 with a notified amount of Rs 11,000 crore.

Government May Retain Additional Subscription

The government has also kept the option to retain additional subscriptions of up to Rs 2,000 crore against each of the two securities. This means it can raise up to Rs 4,000 crore over and above the notified amount, depending on investor demand.

The securities will be sold through the RBI's Mumbai office, and the auction will follow the multiple price method. Under this method, successful bidders receive securities at the yields or prices quoted by them.

Bidding Timings And Process

Both competitive and non-competitive bids must be submitted electronically through the RBI's Core Banking Solution, the e-Kuber platform.

Non-competitive bids can be submitted between 10:30 am and 11:00 am on June 25, while competitive bids will be accepted between 10:30 am and 11:30 am. The auction results will be declared on the same day.

Primary Dealers can submit bids for the Additional Competitive Underwriting (ACU) portion between 9:00 am and 9:30 am on the auction day.

Facility For Retail Investors

The RBI has stated that eligible individuals and institutions can participate through the non-competitive bidding facility. Up to 5 per cent of the notified amount of each security will be allotted under this segment.

Retail investors can also place bids through the RBI Retail Direct portal. Securities will be issued for a minimum amount of Rs 10,000 and in multiples of Rs 10,000 thereafter.

When-Issued Trading Allowed

The two securities will be eligible for "When Issued" trading from June 23 to June 25. This allows market participants to buy and sell the securities before they are formally issued.

The RBI has stated that successful securities allotment will be made through Subsidiary General Ledger (SGL) accounts or Constituents' Subsidiary General Ledger (CSGL) accounts maintained with the central bank.

Interest on government securities is generally paid on a half-yearly basis, although the exact payment schedule is specified in the respective security notification.