RBI Announces Rs 34,000 Crore Government Securities Auction

The Reserve Bank of India (RBI) revealed Thursday that it will be conducting an underwriting auction for Rs 34,000 crore worth of Government Securities. The auction is scheduled for Friday, as per the notification issued by the government detailing the security's re-issue.

The offering consists of 6.48% Government Securities maturing in 2035, with a Minimum Underwriting Commitment (MUC) amount set at Rs 810 crore per Primary Dealer. This forms part of the underwriting scheme initialized on November 14, 2007, which outlines commitments for Primary Dealers in underwriting auctions.

Set to follow a multiple price-based method, the underwriting auction allows Primary Dealers to electronically submit bids through RBI's Core Banking Solution (e-Kuber system) between 9:00 am and 9:30 am on April 10. The underwriting commission will be credited to PDs' accounts with the RBI concurrently with the securities' issuance.

In related news, RBI has also announced that multiple state governments have collectively raised Rs 18,159 crore through State Government Securities auctions. Among these, Andhra Pradesh plans to raise Rs 2,200 crore, Himachal Pradesh will secure Rs 900 crore, and Maharashtra targets Rs 3,600 crore. Meghalaya aims for Rs 259 crore in funds raised through a 10-year security.