On March 4, 2026, the Reserve Bank of India (RBI) announced minimum underwriting commitments (MUCs) for government securities auctions. The central bank set ₹3.81 billion MUC for 2040 bonds and ₹3.1 billion MUC for 2065 bonds, reinforcing market stability and ensuring robust participation from primary dealers in long-term debt issuance.
Minimum Underwriting Commitments:
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2040 Bonds (6.68% GS 2040): ₹3.81 billion MUC.
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2065 Bonds (6.90% GS 2065): ₹3.1 billion MUC.
Auction Details: The RBI confirmed the sale of ₹29,000 crore worth of government securities, split between ₹16,000 crore for 2040 bonds and ₹13,000 crore for 2065 bonds. The auction is scheduled for March 6, 2026, with settlement on March 9, 2026.
Market Context: These long-dated securities are part of India’s strategy to manage fiscal borrowing needs while offering investors stable, long-term returns.
Investor Impact: Primary dealers are required to underwrite a minimum portion, ensuring liquidity and confidence in the debt market. Analysts note that the commitments reflect RBI’s focus on deepening bond market participation.
Strategic Significance: With India’s borrowing program expanding, long-term bonds like the 2040 and 2065 issues are crucial for funding infrastructure and development projects, while balancing fiscal sustainability.
Outlook
The RBI’s move underscores its commitment to strengthening India’s debt market infrastructure. By setting clear underwriting thresholds, the central bank ensures smoother auctions, investor confidence, and alignment with India’s long-term fiscal roadmap.
Sources: Reserve Bank of India (Press Release), PSU Connect, DT Next