RBI Sets ₹32,000 Crore Government Securities Auction for September 4; New 2031 Bond and 7.71% GS 2066 on Offer

The Reserve Bank of India has announced a fresh auction of Government of India dated securities with a total notified amount of ₹32,000 crore, scheduled for September 4, 2026. The sale combines a new medium-term security maturing in 2031 with a re-issue of the long-dated 7.71% Government Security 2066, making the auction relevant for banks, primary dealers, treasury teams, institutional investors and retail investors using the RBI Retail Direct platform.

The auction follows the Government of India notification dated August 31, 2026. RBI’s auction notice states that settlement will take place on September 7, 2026. The Government also retains the option to accept additional subscriptions of up to ₹2,000 crore against each security, over and above the notified amounts.

What is being offered

- New GS 2031: a new Government security maturing on September 7, 2031, with a notified amount of ₹21,000 crore.

- 7.71% GS 2066: a re-issue of the existing Government security maturing on May 18, 2066, with a notified amount of ₹11,000 crore.

- Total notified amount: ₹32,000 crore.

- Green-shoe option: the Government may retain additional subscription of up to ₹2,000 crore for each security.

The new 2031 security will be auctioned on a yield basis, while the re-issue of 7.71% GS 2066 will be auctioned on a price basis. RBI has specified that both will use the multiple-price auction method.

Bid window and settlement timeline

Competitive and non-competitive bids are to be submitted electronically through RBI’s e-Kuber system on September 4. Non-competitive bids are scheduled 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.. RBI says auction results will be announced on the same day.

For primary dealers participating through the Additional Competitive Underwriting facility, the bid window is 9:00 a.m. to 9:30 a.m. on September 4. Successful bidders are required to make payment on the settlement date, September 7.

The minimum bid size is ₹10,000 nominal value and bids must thereafter be in multiples of ₹10,000. The aggregate amount of bids submitted by a bidder cannot exceed the notified amount for the relevant security.

Retail participation and non-competitive allocation

RBI’s notice provides for up to 5% of the notified amount to be allotted to eligible individuals and institutions under the non-competitive bidding facility. Retail investors can also participate through the RBI Retail Direct framework, subject to the applicable terms.

For competitive bids, RBI will determine the cut-off yield for the new 2031 security and the minimum accepted price for the re-issued 2066 security based on auction demand. Investors submitting competitive bids therefore need to assess duration, interest-rate risk and prevailing secondary-market yields before placing bids.

Why treasury and finance teams should watch this auction

The auction adds supply at two very different points on the sovereign yield curve. The new 2031 security provides a fresh benchmark in the medium-term segment, while the 2066 re-issue adds duration at the very long end. Banks, insurers, pension funds, provident funds and other institutional investors may therefore evaluate the securities differently depending on asset-liability requirements, statutory investment needs and duration limits.

Government securities are also used as reference instruments for pricing and valuation across debt markets. Auction cut-offs can influence secondary-market yields and, through the broader yield curve, borrowing benchmarks used by issuers and treasury desks.

Other auction mechanics

RBI says the securities will be eligible for trading in the when-issued market in accordance with the applicable directions during the period specified for the auction. The securities are also eligible for repo transactions under RBI’s repo framework, subject to the governing directions.

Interest on Government dated securities is generally paid half-yearly. Holdings are credited through the usual SGL or CSGL mechanism after successful settlement. Investment by non-residents remains subject to the applicable Government and RBI framework, including the Fully Accessible Route where relevant.

Finance teams and investors planning to participate should note three dates: September 4 for bidding, September 7 for settlement, and the applicable maturity dates of the two securities. Competitive bidders should also confirm the exact auction terms and system cut-offs in RBI’s notice before submission. For investors not bidding competitively, the non-competitive route and Retail Direct platform provide a separate path to participate within the stated allocation framework.

Useful official links

RBI Press Release: Government Securities Auction

Key takeaway

Fresh RBI sovereign debt auction with specific amounts, dates, maturities and bid mechanics likely to attract searches from treasury, banking and fixed-income audiences.