The Reserve Bank of India (RBI) announced that it is poised to infuse another Rs 36,000 crore into the financial system through the re-issuance of two dated government securities. The auction for these securities, it added, will take place on Friday (May 30) and will be conducted through the Reserve Bank of India Mumbai Office.
The first Government Security’s notified amount is worth Rs 6,000 crore and the date of repayment is December 9, 2027. The second GS with notified amount worth Rs 30,000 crore is set to be repaid by May 5, 2035.
“The sale will be subject to the terms and conditions spelt out in the ‘Specific Notification’ mentioned above and the General Notification F.No.4(2)–B(W&M)/2018, dated March 26, 2025,” it said in a release.
The government, RBI further added, has the option to retain additional subscriptions of up to Rs 2,000 crore against each security, potentially increasing the total injection and further enhancing financial system liquidity.
In the press release, RBI said that the auction will be conducted using multiple price methods. “Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (e-Kuber system) on May 30, 2025 (Friday). The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m. and the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m,” it said.
The result of the auction will be announced on the same day and payment by successful bidders will have to be made on June 02, 2025 (Monday).
Per the RBI directive, primary dealers interested in underwriting the Additional Competitive Underwriting portion can submit their bids through the e-Kuber system between 9 a.m. and 9:30 am on Friday.