New Delhi [India], August 22 : The Reserve Bank of India (RBI) on Friday announced the outcome of the underwriting auction held on August 22, 2025, for government securities. According to an RBI press release, Primary Dealers successfully underwrote the entire notified amount of Rs. 6,000 crore for the 5.91 per cent Government Security (GS) 2028 and Rs. 30,000 crore for the 6.33 per cent GS 2035.
For the shorter-tenure 2028 bond, the Minimum Underwriting Commitment (MUC) was fixed at Rs. 3,003 crore, while the Additional Competitive Underwriting (ACU) accepted stood at Rs. 2,997 crore. The ACU commission cut-off rate for this security was set at 0.25 paise per Rs. 100.
In the case of the longer-tenure 2035 bond, the MUC was higher at Rs. 15,015 crore. The ACU accepted amounted to Rs. 14,985 crore, with a commission cut-off rate of 0.79 paise per Rs. 100.
The central bank confirmed that the auction for the sale of these securities was also conducted on the same day, ensuring complete subscription. This, according to the press release, reinforced stability in the government securities market.
The announcement followed the government's earlier decision to re-issue two securities with a total notified amount of Rs. 36,000 crore through an auction conducted by the RBI in Mumbai. The government also kept the option to retain an additional subscription of up to Rs. 2,000 crore for each security.
The auction process, managed through the RBI's Core Banking Solution (E-Kuber) system, accepted bids electronically. Non-competitive bids, meant for small investors and eligible institutions, do not require quoting any yield or price; instead, securities are allotted at the average auction price.
Under competitive bidding, institutions quote the yield or price at which they want to purchase, while in non-competitive bidding, allotment is done at the average auction price.
The RBI stated that the auction followed the price-based method for re-issued securities, with the minimum bid size set at Rs. 10,000 and in multiples thereafter. These issuances are a part of the government's regular borrowing programme aimed at meeting financing needs.
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