RBI to Auction ₹25,000 Crore Government Bonds on July 11, 2025

The Reserve Bank of India (RBI), on behalf of the Government of India, has announced an auction of two dated government securities (G-Secs) with a total notified amount of ₹25,000 crore. The auction is scheduled for July 11, 2025 (Friday) via the RBI’s e-Kuber system, and settlement will take place on July 14, 2025 (Monday).

Auction Details and Securities on Offer

The auction will include:

• A new Government Security maturing on July 14, 2032, worth ₹11,000 crore.
• A re-issue of the 7.09% Government Security maturing on November 25, 2074, worth ₹14,000 crore.

The government also retains the option to accept an additional ₹2,000 crore in subscription for each of the two securities, depending on the demand.

Understanding Dated and Re-Issued Securities

Dated securities are long-term government bonds issued with a fixed interest rate and maturity date. These instruments are used to raise funds for fiscal requirements and pay interest semi-annually to investors.

On the other hand, re-issued securities are previously issued bonds that are offered again to investors. These retain the original terms (interest rate, maturity) and are used to raise additional funds.

Auction Process and Bidding Window

The auction will follow the multiple-price method, allowing both competitive and non-competitive bidding through RBI’s e-Kuber platform:

• Non-competitive bids: 10:30 AM – 11:00 AM
• Competitive bids: 10:30 AM – 11:30 AM

Results will be declared on the same day, and payment by successful bidders must be made by the settlement date.

Additionally, Primary Dealers can bid for underwriting the Additional Competitive Underwriting (ACU) portion from 9:00 AM to 9:30 AM.

Retail Participation and “When Issued” Trading

The securities will be eligible for “When Issued” trading from July 8 to July 11, 2025, allowing early market activity. Investors can purchase in multiples of ₹10,000, and 5% of the notified amount is reserved for retail investors and institutions under the non-competitive bidding facility, accessible through the Retail Direct portal.

Also Read: Upcoming NFOs This Week: Opening from July 7, 2025!

Conclusion

This government bond auction provides a valuable opportunity for both institutional and retail investors seeking stable long-term returns. By facilitating broad participation and offering competitive terms, the RBI continues to play a crucial role in funding the government's fiscal programs efficiently.

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.