Indian Govt Repurchases ₹6,309 Crore G-Secs Through RBI Switch Auction

The Reserve Bank of India (RBI) conducted a switch auction in which the government bought back government securities (G-secs) worth ₹6,309 crore. According to PTI reports, the operation also involved issuing fresh bonds totalling ₹6,431.797 crore. 

Switch auctions are used by the government to exchange bonds nearing maturity with those that mature later. The process changes the timing of repayments without altering the overall borrowing programme. 

Securities Bought Back 

The bonds repurchased in the auction were largely those scheduled to mature in the next financial year. These included ₹1,684 crore of 7.33% GS 2026 and ₹1,035 crore of 5.74% GS 2026. 

The government also bought back ₹590 crore of 8.15% GS 2026 and ₹3,000 crore of 8.24% GS 2027. These securities were part of earlier borrowing and were approaching their redemption period. 

Long-Term Bonds Issued 

In exchange for the repurchased securities, the government issued longer-dated bonds. These included ₹1,719.236 crore of 6.57% GS 2033 and ₹986.526 crore of 7.62% GS 2039. 

Another ₹605.609 crore of 6.57% GS 2033 was issued along with ₹3,120.426 crore of 7.40% GS 2062. Issuing longer-tenure securities shifts repayments to later years. 

Fourth Switch Auction Since February 

The latest auction is the fourth switch operation conducted by the RBI since February. Data from the central bank shows that the previous 3 auctions involved buybacks worth ₹98,591.701 crore. 

Government securities are debt instruments issued by the central government. They carry fixed returns and are backed by a sovereign guarantee. 

Managing Upcoming Redemptions 

Switch operations are being conducted ahead of large bond maturities expected in the next financial year. Government securities worth about ₹5.47 lakh crore are due for redemption during that period. 

For the current financial year, the government has budgeted gross market borrowing of ₹17.2 lakh crore. Adjusting the maturity profile helps spread repayment obligations across a longer timeframe. 

Read More: RBI Proposes New Rules Effective July 1, 2026: Safeguards Against Digital Banking Fraud! 

Conclusion 

The latest switch auction adds to earlier operations carried out this year. By replacing near-term bonds with longer-dated securities, the government adjusts the schedule of repayments while continuing with its planned borrowing programme. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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