RBI Sets ₹28,000 Crore Underwriting Auction for Long-Term Government Securities on May 29
The Reserve Bank of India has scheduled a ₹28,000 crore underwriting auction for the re-issue of two long-term government bonds on May 29, 2026. Primary Dealers will bid via the e-Kuber system for the 6.68% GS 2040 and 7.43% GS 2076 tranches. Underwriting Auction for sale of Government Securities for ₹28,000 crore on May 29, 2026 Government of India has announced the sale (re-issue) of Government Securities, as detailed below, through auction to be held.
This underwriting auction ensures the Union Government's borrowing program remains on track by requiring Primary Dealers (PDs) to commit to specific volumes. By targeting maturities in 2040 and 2076, the RBI is catering to institutional investors like pension funds and insurance companies that require long-dated assets to match their decades-long liabilities. This helps manage the sovereign debt profile by extending the average maturity of outstanding securities.
Under the 2007 framework, each PD faces a Minimum Underwriting Commitment (MUC) alongside additional competitive bidding obligations. The auction follows a multiple price-based method, meaning successful bidders pay the actual price they bid. This setup provides a safety net for the government's funding needs while maintaining liquidity in the secondary market.
| Security Detail | Notified Amount (₹ Crore) | MUC per Primary Dealer (₹ Crore) |
|---|---|---|
| 6.68% GS 2040 | 17,000 | 405 |
| 7.43% GS 2076 | 11,000 | 262 |
| Total | 28,000 | - |
Glossary
Primary Dealer (PD): Financial institutions authorized to buy and sell government securities directly from the RBI, acting as market makers to ensure auction success.
e-Kuber: The RBI’s core banking platform used for managing government bond auctions and other sovereign financial operations.
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