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The Reserve Bank of India (RBI) has announced that the Government of India will sell (actually re-issue) government bonds worth ₹28,000 crore on October 10, 2025 (Friday). These bonds are part of the government’s regular borrowing program — basically, how the government raises money to fund its expenses.
Details of the Securities Being Sold
| Government Security | Maturity Year | Coupon Rate (Interest Rate) | Amount Being Sold |
|---|---|---|---|
| 6.68% GS 2040 | 2040 | 6.68% | ₹16,000 crore |
| 6.90% GS 2065 | 2065 | 6.90% | ₹12,000 crore |
Total = ₹28,000 crore
“GS” means Government Security — a type of government bond. The percentage (6.68%, 6.90%) is the annual interest rate that investors will earn.
Who Underwrites These Bonds?
The RBI uses Primary Dealers (PDs) — these are large financial institutions (like SBI Capital Markets, ICICI Securities, etc.) that guarantee the sale of government bonds. Each PD is required to underwrite (i.e., promise to buy if others don’t) a Minimum Underwriting Commitment (MUC) and may also bid for extra through an Additional Competitive Underwriting (ACU) auction.
Underwriting Details
| Security | MUC per PD (₹ crore) | Minimum Bid under ACU per PD (₹ crore) |
|---|---|---|
| 6.68% GS 2040 | 381 | 381 |
| 6.90% GS 2065 | 286 | 286 |
This means: Each Primary Dealer must take on underwriting of at least ₹381 crore for the 2040 bond and ₹286 crore for the 2065 bond. They can also bid competitively for additional underwriting through the ACU auction.
When and How the Auction Happens
The underwriting auction will take place on October 10, 2025 (Friday). Bidding will happen through the E-Kuber system (RBI’s electronic platform) between 9:00 a.m. and 9:30 a.m. After the auction the underwriting commission (the fee PDs earn for taking the risk) will be credited to their RBI account on the same day when securities are issued.
In Short
- The government is borrowing ₹28,000 crore through bonds maturing in 2040 and 2065.
- RBI is holding an auction among Primary Dealers to underwrite (guarantee) the sale.
- The auction decides how much commission PDs earn for taking on this underwriting responsibility.
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