G-sec Auction: RBI Underwrites ₹34,000 Crore 6.94% GS 2036 Re-issue
Why in the news
On 16 October 2026 the Reserve Bank of India (RBI) held the underwriting auction for a ₹34,000 crore re-issue of the 6.94% Government Security (GS) 2036, ahead of the sale auction of the same bond that day. Primary Dealers (PDs) underwrote the full notified amount.
Key facts
- Security: 6.94% GS 2036 (re-issue); notified amount ₹34,000 crore.
- Minimum Underwriting Commitment (MUC): ₹810 crore per PD; ₹17,010 crore in total.
- Additional Competitive Underwriting (ACU): minimum bid of ₹810 crore per PD; ₹16,990 crore accepted.
- Total underwritten: ₹34,000 crore, i.e. the entire issue.
- ACU commission cut-off: 0.38 paise per ₹100.
- PDs placed ACU bids electronically on RBI’s Core Banking Solution (e-Kuber) between 9:00 and 9:30 am; commission is credited to their current accounts with RBI on the issue day.
- The 2036 bond closed at a yield of about 7.39% on the previous day, and the re-issue took the security’s outstanding size to ₹2.38 lakh crore.
| Component | Amount (₹ crore) |
|---|---|
| Notified amount | 34,000 |
| MUC (total) | 17,010 |
| ACU accepted | 16,990 |
| Total underwritten | 34,000 |
About underwriting of G-secs
RBI sells dated Government of India securities through auctions. Under the underwriting commitment scheme notified on 14 November 2007, every Primary Dealer carries an equal minimum share of each issue (MUC), while the rest is bid for competitively (ACU). PDs receive a commission for underwriting, which RBI credits to their current accounts on the issue day. The sale auction of the bond itself was held the same day.
Exam angle
- Know the split: MUC is mandatory and equal for all PDs; ACU is competitive.
- Underwriting commission is quoted in paise per ₹100 of the amount underwritten.
- e-Kuber is RBI’s core banking solution used for G-sec auctions.