Government To Auction Rs 32,000 Crore Of 6.48 Per Cent G-Secs Maturing In 2035

The government will auction dated securities worth Rs 32,000 crore later this month, as part of its regular market borrowing programme. The auction will involve the re-issue of an existing government security carrying a coupon of 6.48 per cent and maturing on October 6, 2035.

The auction is scheduled to be conducted on January 30, 2026, while the settlement of funds and securities will take place on February 2, 2026. The Reserve Bank of India (RBI) will conduct the auction on behalf of the Government of India through its Mumbai office.

Details Of The Security On Offer

The security being auctioned is the 6.48 per cent Government Security 2035. It has a remaining maturity of a little over nine years and carries a fixed interest rate of 6.48 per cent per year. Interest on government securities is generally paid on a half-yearly basis.

The notified amount for the auction is Rs 32,000 crore. The government also has the option to retain additional subscriptions of up to Rs 2,000 crore against this security, depending on the demand received in the auction.

Auction Method And Bidding Timeline

The auction will be conducted using the multiple price method. Under this method, successful bidders will receive the security at the yield or price quoted in their respective bids.

Both competitive and non-competitive bids will be accepted in the auction. Bids must be submitted electronically through RBI’s Core Banking Solution platform, known as the e-Kuber portal.

Non-competitive bids can be placed between 10:30 am and 11:00 am on the auction day. Competitive bids will be accepted between 10:30 am and 11:30 am. The auction results will be announced on the same day.

Successful bidders will be required to make payment for the securities on February 2, 2026.

Non-Competitive Segment And Retail Access

Up to 5 per cent of the notified amount will be set aside for eligible individuals and institutions under the non-competitive bidding facility. This segment allows participants to invest in government securities without quoting yields or prices.

Retail investors can submit non-competitive bids through banks, primary dealers, or through the RBI Retail Direct platform. Securities allotted under this segment will be issued at the weighted average yield/price which emerges from the competitive bidding process.

The minimum investment in government securities is Rs 10,000, and the rest is in multiples of Rs 10,000.

When-Issued Trading And Underwriting

The security will be eligible for when-issued trading for a limited period of time, from January 27 to January 30, 2026. This facility is to trade in the security in advance of the formal issue of the security.

Primary dealers will be able to submit bids for underwriting the additional competitive underwriting portion of the auction. These bids must be submitted during the specified window on the auction day through e-Kuber.

Regulatory Framework And Eligibility

The auction will be conducted in line with the operational guidelines for government securities auctions. RBI retains the discretion to accept or reject bids, either in full or in part.

The security will be eligible for repo transactions and when-issued trading, as per existing rules. Investments by non-residents will be in accordance with the existing regulatory framework for government securities.