RBI announces re-issue of government securities worth ₹36000 crore, auction on August 22
Reserve Bank of India: The government has announced the re-issue of two government securities (G-Secs) with a total notified amount of Rs 36,000 crore through an auction conducted by the Reserve Bank of India (RBI) on August 22, 2025. Let us know about this in detail.
The government has decided to re-issue two government securities (G-Secs) having a total notified size of Rs 36,000 crore by an auction by the Reserve Bank of India (RBI) on August 22, 2025. As per the official release, the re-issue will include Rs 6,000 crore of 5.91 per cent Government Security (GS) 2028 and Rs 30,000 crore of 6.33 per cent GS 2035.
In addition, the government will have the option to retain additional subscription of up to Rs 2,000 crore against each of the two securities. The auction will be held at the Mumbai office of the RBI. Bids will be submitted electronically through the RBI Core Banking Solution (E-Kuber) system. Non-competitive bids will be accepted between 10:30 am and 11:00 am, while competitive bids will be accepted between 10:30 am and 11:30 am on the same day.
Competitive bids are mainly placed by large institutions, where they quote the yield or price at which they wish to buy, and the allotment depends on the cut-off fixed in the auction. Non-competitive bids for small investors and eligible institutions do not require any yield or price to be quoted; instead, the securities are allotted at the average auction price.
The government has also kept provisions for allotment to non-competitive bidders, including eligible individuals and institutions. Up to 5 per cent of the notified amount of sale under the non-competitive bidding facility in auctions of government securities will be reserved. Successful bidders will have to make payment on August 25, 2025, which will also be the date of re-issue. The payment will include interest accrued from the date of original issue or last coupon payment till August 24, 2025.
