New Delhi–The Government of India on Monday announced that it will auction government bonds worth approximately $3.85 billion on January 2, through the Reserve Bank of India (RBI).
The auction will involve the re-issue of the 6.48 per cent Government Security 2035, with a notified amount of ₹32,000 crore (around $3.85 billion). The sale will be conducted through a price-based auction using the multiple price method and will be handled by the RBI’s Mumbai office.
According to a Finance Ministry statement, the government has the option to retain additional subscriptions of up to ₹2,000 crore, which is roughly $240 million, against the security.
Up to 5 per cent of the notified amount will be reserved for eligible individuals and institutions under the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
Both competitive and non-competitive bids must be submitted electronically through the RBI’s Core Banking Solution (E-Kuber system) on January 2, 2026. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m., while competitive bids can be placed between 10:30 a.m. and 11:30 a.m.
The results of the auction will be announced on January 2, and successful bidders will be required to complete payment on January 5.
The government security will also be eligible for ‘When Issued’ trading, in line with RBI guidelines on When Issued transactions in Central Government Securities issued on July 24, 2018, and amended from time to time.
Governments issue bonds to raise funds for public expenditure such as infrastructure development, social welfare programmes, and to bridge budget deficits. These bonds are considered low-risk investments as they are backed by sovereign guarantee and typically offer stable, though relatively lower, interest returns.
(Currency conversion is approximate, based on an exchange rate of ₹83 per US dollar.)
