RBI Sets Underwriting Commission For 2035 Bonds

India’s central bank has announced the underwriting commission for the 2035 government bonds, setting it at 0.0064 rupee per 100 rupees. The decision, disclosed on January 1, 2026, outlines the fee payable to primary dealers who underwrite government securities during auctions.

Underwriting commissions are a critical component of India’s debt issuance framework, as they incentivize primary dealers to absorb unsold portions of government bonds, thereby ensuring successful auctions. By keeping the commission modest, the Reserve Bank of India (RBI) balances fiscal prudence with market participation.

Key Highlights

• RBI fixed the underwriting commission for 2035 bonds at 0.0064 rupee per 100 rupees.
• Primary dealers will receive this fee for underwriting government securities during auctions.
• The commission structure ensures smooth bond issuance while containing fiscal costs.
• The announcement reflects RBI’s ongoing focus on efficient debt management practices.
• India’s bond market continues to attract strong investor interest, supported by stable yields and liquidity.

This development underscores the RBI’s role in maintaining orderly debt issuance while safeguarding fiscal discipline. The calibrated commission rate is expected to support robust participation in the 2035 bond auctions, reinforcing confidence in India’s sovereign debt market.

Sources: Reuters, Reserve Bank of India