RBI’s June 27 Auction: A ₹36,000 Crore Opportunity for Investors and Dealers

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The Reserve Bank of India (RBI) has announced a major auction for the sale of government securities totaling ₹36,000 crore, scheduled for June 27, 2025. This move is part of the government’s ongoing strategy to manage its borrowing program and provide secure investment opportunities for both institutional and retail investors.

Key Highlights:

The auction will offer a total of ₹36,000 crore in government securities, comprising both new issuances and re-issues.
RBI has set the minimum underwriting commitment for primary dealers at ₹7.15 billion for the 2035 government bonds and ₹1.43 billion for the new government bond maturing in 2028.
The underwriting auction will be conducted using a multiple price-based method, ensuring competitive and transparent price discovery.
Primary Dealers (PDs) are required to submit their Additional Competitive Underwriting (ACU) bids electronically via the RBI’s e-Kuber platform.
The auction is part of a scheduled borrowing calendar, enhancing transparency and enabling better investment planning for market participants.
Up to 5% of the total notified amount is reserved for eligible non-competitive bidders, including retail investors, through the RBI’s Retail Direct portal.
Interest on these securities will be paid semi-annually, and the instruments are eligible for repurchase (repo) transactions and “when issued” trading.

The move supports the government’s efforts to deepen the bond market, maintain fiscal discipline, and provide attractive, risk-free investment options to a broad investor base.

This auction underscores RBI’s commitment to efficient market operations and supports the government’s fiscal objectives for the financial year.

Source: RBI, Fortune India, HDFC Sky, Times of India