By re-issuing two-dated government securities, the Reserve Bank of India (RBI) said it is prepared to inject an additional Rs 36,000 crore into the financial system. It further stated that the Reserve Bank of India, Mumbai Office, will host the auction for these assets on Friday, May 30.
On December 9, 2027, the first Government Security’s notified amount of Rs 6,000 crore comes due. May 5, 2035, is the deadline for repaying the second GS, which has a notified sum of Rs 30,000 crore.
The RBI also stated that the government may choose to keep up to Rs 2,000 crore in extra subscriptions for each security, which could raise the overall infusion and improve the liquidity of the financial system.
The RBI stated in the press release that the auction will be held utilizing a variety of pricing strategies. On May 30, 2025 (Friday), both competitive and non-competitive bids for the auction must be made electronically via the Reserve Bank of India Core Banking Solution (e-Kuber system). It stated that the competitive bids should be placed between 10:30 and 11:30 a.m., and the non-competitive bids between 10:30 and 11:00 a.m.
The auction’s outcome will be revealed the same day, and the successful bidders will need to pay on Monday, June 02, 2025.
Primary dealers who wish to underwrite the Additional Competitive Underwriting component may do so by submitting their bids via the e-Kuber system on Friday between 9 and 9:30 am, by the RBI order.
