The Reserve Bank of India (RBI) has announced that the Government of India will conduct a conversion/switch of securities worth ₹150 billion (₹15,000 crore) on December 15, 2025. The auction aims to optimize debt maturity profiles, reduce refinancing risks, and strengthen India’s sovereign debt management strategy amid evolving market conditions.
The Reserve Bank of India (RBI) has confirmed that the Government of India will hold a conversion/switch auction of government securities totaling ₹150 billion (face value) on December 15, 2025.
This process involves replacing existing securities with new ones, thereby reshaping the maturity structure of government debt. By extending maturities and redistributing obligations, the government seeks to minimize rollover risks, smoothen redemption pressures, and enhance fiscal flexibility.
The auction will cover multiple securities maturing between 2027 and 2029, which will be switched into longer-dated instruments maturing between 2033 and 2035. This aligns with India’s broader debt management strategy, ensuring stability in financing while supporting long-term infrastructure and fiscal commitments.
Market participants, including banks and institutional investors, are expected to actively engage in the auction, given its implications for liquidity management and yield curve dynamics.
Key Highlights / Major Takeaways
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Auction Date: December 15, 2025.
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Total Value: ₹150 billion (₹15,000 crore) in government securities.
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Mechanism: Conversion/switch of shorter-term securities into longer-dated ones.
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Objective: Reduce refinancing risks, manage redemption pressures, and optimize debt maturity.
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Market Impact: Expected to influence liquidity and yield curve positioning.
Sources: Reserve Bank of India – Official Press Release, Business StandardBusiness Standard