The Reserve Bank of India (RBI) has set the underwriting commission for its upcoming 2035 government bonds at ₹0.0075 per ₹100. The move reflects RBI’s calibrated approach to managing borrowing costs while ensuring adequate participation from primary dealers. This decision underscores India’s focus on fiscal stability and efficient debt management.
The Reserve Bank of India (RBI) has announced the underwriting commission for the issuance of 2035 government bonds, fixing it at ₹0.0075 per ₹100. This commission is payable to primary dealers who underwrite the bond issuance, ensuring smooth subscription and reducing risks associated with government borrowing.
The announcement comes as part of RBI’s broader debt management strategy, aimed at balancing fiscal needs with market stability. By setting a modest commission, the central bank signals confidence in market appetite for long-term securities, while keeping borrowing costs under control.
Key Highlights:
Commission Rate: ₹0.0075 per ₹100 for 2035 government bonds.
Purpose: Incentivize primary dealers to underwrite bond issuance.
Market Impact: Ensures smooth subscription and liquidity in long-term debt instruments.
Fiscal Context: Supports India’s borrowing program while maintaining cost efficiency.
Investor Confidence: Reflects RBI’s assurance of stable demand for sovereign debt.
This step reinforces RBI’s role in maintaining fiscal discipline and market confidence, while providing clarity to participants in India’s government securities market.
Sources: Reuters, Economic Times, Business Standard