The Reserve Bank of India (RBI) has announced an underwriting auction for the re-issue of a government security worth ₹34,000 crore, scheduled to be conducted on June 5, 2026.
The Reserve Bank of India has issued details of an underwriting auction related to the sale of a Government of India security valued at ₹34,000 crore. The auction will be held on June 5, 2026, ahead of the government’s planned bond issuance.
According to the RBI, the security being re-issued is the 6.94% Government Security (GS) 2036. The underwriting auction will be conducted under the existing underwriting framework notified on November 14, 2007, which requires Primary Dealers (PDs) to participate in both the Minimum Underwriting Commitment (MUC) and Additional Competitive Underwriting (ACU) mechanisms.
For the upcoming auction, the notified amount has been set at ₹34,000 crore. The RBI has fixed the Minimum Underwriting Commitment at ₹810 crore per Primary Dealer. The minimum bidding commitment under the Additional Competitive Underwriting auction has also been specified at ₹810 crore per dealer.
The underwriting process is intended to ensure adequate market support for government borrowing programmes by requiring designated market participants to underwrite a portion of the securities being issued. Such auctions play a key role in facilitating the smooth conduct of government bond sales and maintaining liquidity in the sovereign debt market.
The RBI stated that the auction will follow a multiple price-based method. Eligible Primary Dealers will be required to submit their bids electronically through the Reserve Bank’s Core Banking Solution, commonly known as the e-Kuber system.
Bidding for the underwriting auction will take place between 10:30 a.m. and 11:00 a.m. on June 5, 2026. The central bank also noted that the underwriting commission will be credited to the current accounts maintained by the respective Primary Dealers with the RBI on the date of issuance of the security.
The announcement forms part of the government’s ongoing market borrowing programme and outlines the operational framework for the participation of Primary Dealers in the bond issuance process.
Source: This article is based on Press Release issued by the Reserve Bank of India on June 4, 2026
Press Releases – Reserve Bank of India
