Government to Auction ₹32,000 Crore in Dated Securities via RBI on May 15
Why it matters
The Reserve Bank of India has scheduled the auction of two Government of India (GoI) dated securities for May 15, 2026, aimed at raising ₹32,000 crore. The offering splits between a re-issue of the 2031 benchmark (₹21,000 crore) and a new ultra-long-term security maturing in 2066 (₹11,000 crore). A greenshoe option allows the government to retain an additional ₹2,000 crore per security if demand exceeds the notified amount.
The auction will use the multiple-price method, where successful bidders receive the security at their specific quoted yield or price. Competitive bidding opens for one hour on Friday morning, while non-competitive participants—including retail investors via the RBI Retail Direct portal—have a 30-minute window. Allotment in the non-competitive segment is capped at 5% of the notified amount and will be determined by the weighted average rate of successful competitive bids. Settlement is slated for May 18, 2026.
| Security | Notified Amount (₹ Cr) | Maturity |
|---|---|---|
| 6.36% GS 2031 | 21,000 | Feb 16, 2031 |
| New GS 2066 | 11,000 | May 18, 2066 |
Glossary
Multiple Price Method: An auction format where successful bidders pay the price or yield they specifically bid, rather than a single uniform cut-off rate.
Primary Dealers (PDs): Registered financial entities authorized to buy and sell government securities directly from the RBI, facilitating market liquidity and underwriting auctions.
NaukriSync Exam Angle
Indian Economy. Focus on the RBI's role in sovereign debt management and the mechanics of G-Sec auctions. Relevant technical details include the e-Kuber platform’s role and the 5% reservation for non-competitive bidding. Potential exam questions may target bond tenures—particularly the 40-year 2066 bond—and the difference between price-based re-issues and yield-based new issues.