RBI to Auction Government Securities Worth Rs 32,000 Crore

The Reserve Bank of India (RBI) is set to auction government securities totaling Rs 32,000 crore, scheduled for October 31, 2025. The initiative, acting on behalf of the Government of India, features four securities with diverse maturities and yields, poised to mature between 2028 and 2055. A Sovereign Green Bond is notably part of the offering.

This auction will follow a multiple price method and electronic submissions via RBI's e-Kuber system. Financial institutions will submit competitive bids requiring specific yields or prices; allocation aligns with cut-off yields determined during the auction. Conversely, non-competitive bids allow smaller investors to partake, receiving allotments at weighted average prices.

Anticipated results of the auction, to be publicized on the auction day, compel successful bidders to complete payments by November 3, 2025. Additionally, “When Issued” trading is permissible from October 28-31, 2025, promoting early price discovery. Government securities, perceived as stable, serve as debt instruments for government-initiated infrastructure funding.