RBI Sets ₹6.67 Billion Underwriting Floor for 2065 & 2040 Bonds Ahead of ₹28,000 Crore Auction

Image Source: The Hindu Business Line

The Reserve Bank of India has set minimum underwriting commitments of ₹2.86 billion for the 2065 bonds and ₹3.81 billion for the 2040 bonds ahead of the October 10 auction. These commitments ensure robust participation from primary dealers and support the successful issuance of ₹28,000 crore in government securities.

The Reserve Bank of India (RBI) has announced minimum underwriting commitments totaling ₹6.67 billion for two long-term government securities—₹2.86 billion for the 6.90% GS 2065 bond and ₹3.81 billion for the 6.68% GS 2040 bond. These commitments are part of RBI’s broader strategy to ensure liquidity and stability in the upcoming ₹28,000 crore government securities auction scheduled for October 10, 2025.

Underwriting Commitments:

₹2.86 billion for 6.90% GS 2065
₹3.81 billion for 6.68% GS 2040 These figures represent the minimum Additional Competitive Underwriting (ACU) obligations for primary dealers participating in the auction.

Auction Details:

Total notified amount: ₹28,000 crore
6.68% GS 2040: ₹16,000 crore
6.90% GS 2065: ₹12,000 crore
Auction Date: October 10, 2025
Settlement Date: October 13, 2025

Auction Methodology: The sale will be conducted via RBI’s e-Kuber platform using a multiple price method. Both competitive and non-competitive bids will be accepted, with results announced on the same day.

“When Issued” Trading: The securities are eligible for “When Issued” trading from October 7 to October 10, allowing market participants to trade the bonds before formal issuance.

Investor Access: Up to 5% of the notified amount will be allocated to eligible individuals and institutions under the non-competitive bidding scheme, including access via RBI’s Retail Direct portal.

Market Implications: These long-duration bonds are expected to attract institutional investors seeking stable returns, and the underwriting commitments ensure strong participation and price discovery.

This move reflects RBI’s commitment to maintaining orderly government borrowing and deepening India’s sovereign debt market. The underwriting floor provides assurance of demand and supports the broader fiscal financing strategy.

Sources: Reserve Bank of India Press Release ChiniMandi News Press Information Bureau

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