RBI Announces Auction of Government Securities Worth ₹34,000 Crore

The Union Government has notified the re-issuance of a government security worth ₹34,000 crore under its ongoing borrowing programme to meet fiscal requirements. The auction will be conducted by the Reserve Bank of India (RBI) for the 6.48% government security maturing on October 6, 2035. An additional subscription of up to ₹2,000 crore may also be accepted, depending on investor demand and market conditions.

Auction Details and Timeline

The auction is scheduled for April 10, 2026, at the RBI’s Mumbai office and will be conducted through the e-Kuber platform. Bidding will be electronic, with non-competitive bids accepted between 10:30 a.m. and 11:00 a.m., while competitive bids can be submitted until 11:30 a.m.

Results will be announced on the same day, and successful bidders must complete payment on April 13, 2026. The settlement amount will include accrued interest from the last coupon payment date up to the settlement date.

Purpose of Borrowing

The funds raised will be used to finance government expenditure, manage the fiscal deficit, and ensure adequate liquidity in the financial system through structured debt issuance.

Bond Features and Returns

The security offers a fixed coupon rate of 6.48% and will mature on October 6, 2035. Interest will be paid semi-annually on April 6 and October 6 each year, making it a long-term investment option for fixed income investors.

To encourage wider participation, up to 5% of the notified amount has been reserved for retail investors and eligible institutions under the non-competitive bidding route. Investors can participate through authorised intermediaries such as banks and stock exchanges, or directly via the RBI Retail Direct Gilt Account.

The minimum investment size is set at ₹10,000, with investments allowed in multiples thereof, ensuring accessibility for small investors.

The bond issuance reflects the government’s strategy of raising funds in a structured and predictable manner while also deepening participation in the domestic government securities market, including retail investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.