Summary of this article
RBI to auction Rs 32,000 crore 2035 security
Multiple price method auction scheduled on February 27
Retail investors can participate via non-competitive bidding
The Reserve Bank of India (RBI) has made an announcement regarding the re-issue of a dated government security with a coupon rate of 6.48 per cent and a maturity date of October 6, 2035. The notified value for the auction is set at Rs 32,000 crore. The government has also retained an option to accept additional subscriptions of up to Rs 2,000 crore over and above the notified value.
The auction will take place on February 27, 2026, with the settlement date set on March 2, 2026.
Bidding Process And Participation
The auction will be conducted through the multiple price system, where the successful bidder will have to pay the amount they bid for. Both non-competitive and competitive bids have to be submitted electronically through RBI's e-Kuber system.
Non-competitive bids will be accepted between 10:30 am and 11:00 am. Competitive bids can be submitted between 10:30 am and 11:30 am on the day of the auction. The results will be announced on the same day.
Under the non-competitive bidding facility, a maximum of 5 per cent of the notified amount is reserved for eligible individual and institutional investors. Retail investors can also bid through the RBI Retail Direct facility.
The primary dealers are required to submit bids for the additional competitive underwriting portion between 9:00 am and 9:30 am on the auction date.
Trading And Eligibility Features
The security will be eligible for "when issued" trading between February 24 and February 27, 2026. This facility allows traders to trade the security prior to its actual issuance.
The minimum amount required for investment in the security is Rs 10,000, and it is multiples thereafter. This makes it feasible for a large number of investors. The interest payment on such government securities is made on a half-yearly basis.
The security will also be eligible for repurchase transactions, or repo, as per the existing guidelines. Further, the investments made by non-residents will be subject to applicable guidelines under the fully accessible route.
Operational Framework
The cut-off yield or price will be determined by the RBI based on the bids received. The bids that are outside the accepted range will be rejected. The successful bidders will receive the government security in their Subsidiary General Ledger or Constituents' Subsidiary General Ledger accounts.
The auction is a part of the regular borrowing requirement of the government, which is conducted through dated securities issued at market-determined rates.
