RBI to auction government securities worth Rs 32,000 crore on August 1

Mumbai, Maharashtra [India] July 29 : The Government of India has announced the auction of two dated securities totalling Rs 32,000 crore, to be conducted by the Reserve Bank of India (RBI) on August 1, 2025.

The move is aimed at managing the government's market borrowings through re-issuance of long-term bonds.

According to a press release from the RBI, the auction comprises the re-issuance of two government securities first at a yield of 6.68 per cent GS 2040 and second at 6.90 percent GS 2065, with a notified amount of Rs 16,000 crore each. The settlement for the auction is scheduled for August 4, 2025.

The central bank has also retained the option to accept additional subscriptions of up to Rs 2,000 crore for both securities, potentially raising the total issue size to Rs 36,000 crore.

The sale will take place at the RBI's Mumbai Office and will be governed by specific and general notifications issued by the central bank.

The auction will follow the multiple price method. Competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while the non-competitive bids are allowed from 10:30 a.m. to 11:00 a.m. on August 1, 2025 through the RBI's Core Banking Solution platform, e-Kuber.

Results of the auction will be declared on the same day.

The government has reserved up to 5 per cent of the notified amount for non-competitive bidding to encourage wider participation from retail investors and institutions. These investors may place their bids through the RBI Retail Direct platform.

Each investor may submit multiple bids, but the aggregate should not exceed the notified amount. Securities will be issued in a minimum denomination of Rs 10,000 and in multiples thereof.

The RBI retains the discretion to accept or reject any or all bids. Successful bidders will receive the securities via credit to their Subsidiary General Ledger (SGL) or Constituents' Subsidiary General Ledger (CSGL) accounts.

These bonds are eligible for repo transactions and investments under the Fully Accessible Route for non-residents. Interest payments on the securities will be made on a half-yearly basis.

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