Government to Auction ₹34,000 Crore of 6.94% GS 2036 on August 28; RBI Sets Bid and Settlement Timeline

The Government of India has announced a fresh re-issue of the 6.94% Government Stock 2036 for a notified amount of ₹34,000 crore, with the auction scheduled for August 28, 2026 through the Reserve Bank of India. The security matures on May 11, 2036, and the government has retained an option to accept an additional subscription of up to ₹2,000 crore.

What the August 24 announcement says

RBI's August 24, 2026 press release states that the sale will be conducted through its Mumbai office under the terms of the Government of India's specific notification F.No.4(1)-B(W&M)/2026 dated August 24, 2026, read with the applicable general notification. Because this is a re-issue, the auction will be conducted using the multiple-price method, under which successful competitive bidders are allotted the security at their respective accepted bid prices.

The notified amount is ₹34,000 crore for the 6.94% GS 2036. The government may retain additional subscription of up to ₹2,000 crore, which means the final accepted amount can exceed the notified figure if the option is exercised.

Auction and settlement timeline

Both competitive and non-competitive bids are to be submitted electronically through RBI's e-Kuber system on August 28, 2026. RBI has specified separate bidding windows: non-competitive bids are to be submitted between 10:30 a.m. and 11:00 a.m., while competitive bids can be submitted between 10:30 a.m. and 11:30 a.m.

The auction result is scheduled to be announced on the same day. Successful bidders must make payment on August 31, 2026, which is also the settlement date specified for the transaction.

Primary Dealers participating in the Additional Competitive Underwriting portion have an earlier window on August 28: their underwriting bids can be submitted from 9:00 a.m. to 9:30 a.m. through e-Kuber.

Retail and non-competitive participation

RBI's operational annex states that up to 5% of the notified amount in government-security auctions is available for eligible individuals and institutions under the non-competitive bidding facility. Individual investors may participate through the RBI Retail Direct platform under the applicable non-competitive scheme.

Allotment in the non-competitive segment is made at the weighted-average price or yield emerging from the successful competitive bids. The security is issued in a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 thereafter.

When-issued trading begins August 25

An important near-term market detail is that the 6.94% GS 2036 will be eligible for when-issued trading from August 25 to August 28, 2026. When-issued transactions allow eligible market participants to trade the security before the auction and final issue settlement, subject to RBI's applicable rules.

The security is also eligible for repo transactions under RBI's prevailing repo directions. RBI's annex further notes that investment by non-residents is subject to the Fully Accessible Route and other applicable guidelines issued by the central bank.

Why finance and treasury teams should track this auction

For banks, primary dealers, institutional investors and corporate treasury professionals, the auction adds a sizeable mid-to-long maturity government security supply point to the market at the end of August. The multiple-price auction format, competitive bidding cutoff, settlement date and when-issued trading window are all operationally relevant for participants managing liquidity, duration exposure and government-security portfolios.

Chartered Accountants and finance teams involved in treasury reporting, investment accounting or valuation should also note the exact security identifier, coupon, maturity date, auction date and settlement date when reconciling investment transactions and period-end holdings. The relevant accounting and regulatory treatment will continue to depend on the entity type and applicable financial-reporting framework.

The immediate action date is August 28, 2026. The government is offering ₹34,000 crore of 6.94% GS 2036, with a possible additional retention of ₹2,000 crore. Competitive and non-competitive bids will be accepted through e-Kuber in the prescribed windows, results are due the same day, and settlement is scheduled for August 31. Market participants should use RBI's official press release and specific Government of India notification for final bidding and operational instructions.

Useful official links

RBI Press Release: Auction of Government of India Dated Security

Key takeaway

Fresh RBI auction announcement with immediate dates, material government borrowing amount and practical relevance for treasury, banking, investment and finance professionals.