RBI to Auction ₹32,000 Crore in Govt Securities on August 1 to Manage Market Borrowings

The Government of India, through the Reserve Bank of India (RBI), has announced that it will conduct an auction of two dated securities totaling ₹32,000 crore on August 1, 2025. This move is part of the government's strategy to manage its market borrowings by re-issuing long-term bonds.

According to an official RBI press release, the auction will feature the re-issuance of two government securities: the 6.68 per cent GS 2040 and the 6.90 per cent GS 2065. Each security has a notified amount of ₹16,000 crore. The settlement for this auction is slated for August 4, 2025.

The central bank has also reserved the flexibility to accept additional subscriptions of up to ₹2,000 crore for each security, which could potentially increase the total issue size to ₹36,000 crore. The auction will be held at the RBI's Mumbai Office and will adhere to the specific and general notifications issued by the central bank.

The auction will follow the multiple price method. Competitive bids are scheduled to be submitted between 10:30 a.m. and 11:30 a.m. on August 1, 2025. Non-competitive bids will be accepted from 10:30 a.m. to 11:00 a.m. on the same day. All bids must be submitted through the RBI's Core Banking Solution platform, eKuber. The results of the auction are expected to be declared on August 1, 2025.

To encourage broader participation from retail investors and institutions, the government has reserved up to 5 per cent of the notified amount for non-competitive bidding. These investors can place their bids through the RBI Retail Direct platform. While multiple bids are permitted from each investor, the aggregate amount should not exceed the notified limit.

The securities will be issued in a minimum denomination of ₹10,000 and in multiples thereof. The RBI maintains the discretion to accept or reject any or all bids received. Successful bidders will have the securities credited to their Subsidiary General Ledger (SGL) or Constituents' Subsidiary General Ledger (CSGL) accounts.

These newly issued bonds are eligible for repo transactions and can be invested under the Fully Accessible Route (F.A.R.) for non-residents, enhancing their appeal to a wider range of investors. Interest payments on these government securities will be made on a half-yearly basis.

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