RBI has set minimum underwriting commitments of ₹2.86 billion for 2074 bonds and ₹4.29 billion for 2030 bonds. The move strengthens participation in government securities auctions, stabilizes yields, and supports India’s borrowing program. Analysts see this as a proactive step to ensure debt market liquidity and investor confidence.
The Reserve Bank of India (RBI) has announced fresh minimum underwriting commitments for government securities, reinforcing its strategy to ensure smooth debt market operations. The commitments apply to two key maturities—2030 bonds and 2074 bonds—and are aimed at strengthening investor confidence and market stability.
Commitments for 2074 Bonds
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RBI has set a minimum underwriting commitment of ₹2.86 billion for the ultra-long maturity 2074 bonds.
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This ensures adequate participation and liquidity in the market for long-dated securities.
Commitments for 2030 Bonds
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For the medium-term 2030 bonds, the RBI has mandated a minimum underwriting commitment of ₹4.29 billion.
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The higher allocation reflects the importance of this maturity in balancing India’s debt profile.
Market Implications
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These commitments are part of RBI’s Primary Dealer (PD) framework, which requires dealers to underwrite government securities auctions.
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Analysts note that the move will support borrowing programs, stabilize yields, and maintain investor confidence.
The announcement highlights RBI’s proactive role in managing debt issuance and liquidity across different maturities.
This step underscores the central bank’s focus on ensuring robust participation in government bond auctions, thereby safeguarding India’s fiscal financing needs.
Sources: Economic Times, Business Standard, Moneycontrol