The central government has notified the re-issue of a dated government security worth Rs 34,000 crore as part of its ongoing borrowing programme to meet fiscal requirements.
The auction, to be conducted by the Reserve Bank of India (RBI), will involve the 6.48 per cent government security maturing on October 6, 2035.
As per the notification, the government may also retain an additional subscription of up to Rs 2,000 crore, indicating flexibility to raise higher funds depending on market response.
The borrowing is aimed at financing government expenditure, managing fiscal deficit, and ensuring liquidity in the financial system through calibrated debt issuance.
The auction will be held on April 10, 2026, at the RBI’s Mumbai office, with bids to be submitted electronically through the e-Kuber system. Non-competitive bids will be accepted between 10.30 am and 11.00 am, while competitive bids will be allowed until 11.30 am.
The results will be declared on the same day, and successful bidders will be required to make payments on April 13, 2026. The payment will include accrued interest calculated from the last coupon payment date up to the settlement date.
The security carries a coupon rate of 6.48 per cent and will have a maturity period ending on October 6, 2035. Interest will be paid on a half-yearly basis, specifically on April 6 and October 6 each year, making it an attractive instrument for long-term investors.
The notification also emphasises broader participation by allowing retail investors to take part through a non-competitive bidding facility. Up to 5 per cent of the notified amount has been reserved for eligible individuals and institutions.
This provision is intended to promote retail investment in government securities and deepen the domestic bond market.
Retail investors can participate either through authorised aggregators such as banks and stock exchanges or directly via the RBI’s Retail Direct Gilt Account. The minimum bid amount has been set at Rs 10,000 and in multiples thereof, ensuring accessibility for small investors as well.
The latest bond auction reflects the government’s strategy to raise resources in a structured manner while encouraging wider participation, including retail investors.
