The Government of India has announced the sale of two dated securities for a total notified amount of ₹28,000 crore, according to a Reserve Bank of India press release issued on July 20, 2026.
The auction will be conducted by the Reserve Bank of India through its Mumbai office at Fort. Bids will be placed electronically on RBI’s Core Banking Solution, the e-Kuber system, on Friday, July 24, 2026. Settlement for successful bidders is scheduled for Monday, July 27, 2026.
Two securities to be auctioned
The notified amount is split between a new government security maturing in 2041 and a re-issued security maturing in 2076. The first is New GS 2041, with a repayment date of July 27, 2041, and a notified amount of ₹17,000 crore. The second is 7.43% GS 2076, with a repayment date of January 19, 2076, and a notified amount of ₹11,000 crore.
The sale is being made under Government of India specific notification F.No.4(1)-B(W&M)/2026 dated July 20, 2026. It will also be subject to the relevant general notification dated March 26, 2025, as mentioned in the RBI release.
The government will have the option to retain additional subscription of up to ₹2,000 crore against each of the two securities. This means the accepted amount may be higher than the notified amount if the government chooses to exercise that option.
Auction method and bidding schedule
The auction will use the multiple price method. Under this method, successful bids are accepted at the yield or price quoted by the bidders for the relevant security. As per the auction guidelines, the new security will be auctioned on a yield basis, while the re-issued security will be auctioned on a price basis.
Both competitive and non-competitive bids must be submitted in electronic format through e-Kuber. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m. on July 24. Competitive bids will be accepted between 10:30 a.m. and 11:30 a.m. on the same day.
RBI said the auction result will be announced on July 24. Successful bidders will have to make payment on July 27, the settlement date.
Underwriting and when-issued trading
Primary Dealers can submit bids for underwriting of the Additional Competitive Underwriting portion between 09:00 a.m. and 09:30 a.m. on July 24 through the e-Kuber system.
The two securities will also be eligible for when-issued trading from July 21, 2026, to July 24, 2026. When-issued trading allows market participants to trade a security before it is formally issued, subject to RBI’s guidelines for central government securities.
Minimum bid size and non-competitive bidding
The securities will be issued for a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 thereafter.
Under the non-competitive bidding facility, up to 5% of the notified amount for each security will be allotted to eligible individuals and institutions. Individual investors may also place bids under the non-competitive scheme through the Retail Direct route.
Banks and Primary Dealers can submit consolidated non-competitive bids on behalf of their constituents based on firm orders received from them. Allotment in the non-competitive segment will be made at the weighted average yield or price that emerges from successful competitive bids.
Other operational details
- Physical bids will not be accepted except in extraordinary circumstances, such as system failure.
- If e-Kuber fails, physical bids must be submitted to the Public Debt Office, Mumbai, in the prescribed form before the auction timing ends.
- An investor can submit more than one competitive bid, but the aggregate bid amount cannot exceed the notified amount of the auction.
- RBI will decide the minimum price or maximum yield up to which bids will be accepted.
- Bids below the minimum price or above the maximum yield fixed by RBI will be rejected.
RBI has said it retains full discretion to accept or reject any or all bids, either wholly or partly, without assigning a reason.
The securities allotted to successful bidders will be credited to Subsidiary General Ledger accounts or Constituents’ Subsidiary General Ledger accounts maintained with RBI. Interest on government securities is generally paid half-yearly, except in cases involving non-standard maturities, with exact coupon payment details specified in the relevant notification.
The securities will be eligible for repo transactions as per RBI’s 2025 repo directions, as amended from time to time. Investment by non-residents will be subject to the guidelines applicable to the Fully Accessible Route and other related RBI rules.
Source: Reserve Bank of India Press Releases.