Centre to borrow ₹33,000 crore through four bonds at Oct 1 auction
The government will sell four bonds worth ₹33,000 crore on October 1, from a 3-year bond to 30-year bonds including a green bond. Payment is due October 5.
Official title: Auction of Government of India Dated Securities · Press Release 2026-2027/1203
What happened
The Government of India is borrowing ₹33,000 crore by selling four bonds in an auction on Thursday, October 1, 2026. Three are plain bonds: ₹9,000 crore of the 6.20% bond due 2029, ₹12,000 crore of the 6.57% bond due 2033 and ₹9,000 crore of the 7.63% bond due 2056. The fourth is ₹3,000 crore of a 7.50% Sovereign Green Bond due 2056. All are re-issues, meaning more of existing bonds.
The government may keep up to ₹2,000 crore extra on each bond. Banks and big investors bid electronically from 10:30 a.m., results come the same day and payment is on Monday, October 5. Each bidder pays the rate it quoted. Up to 5% of each bond is set aside for small investors who do not name a price.
This is routine. The government borrows through such auctions regularly to fund its spending.
What it means for you
If you want to lend to the government yourself, individuals can bid in these auctions through the RBI Retail Direct portal. The minimum is ₹10,000. As a taxpayer your effect is small: the interest the government pays on these bonds comes from public money.
What it means for businesses
Banks, insurers and mutual funds are the main buyers. The cut-off rates will set a benchmark for what other borrowers, such as companies, pay on bonds of similar length.
Links in this release, explained
- Government of India specific notification, September 28, 2026
The Finance Ministry notice for this particular auction. It carries the legal terms of each bond being sold, such as the interest rate and repayment date. Most readers will not need it.
rbidocs.rbi.org.in/rdocs/content/pdfs/GSEC28092026_E.pdf - General Notification on sale of government securities (March 26, 2025)
The standing Finance Ministry notice that sets the general rules for how the Centre sells its bonds and Treasury bills. Each auction is held under it.
rbidocs.rbi.org.in/rdocs/content/pdfs/GOI26032025_1.pdf - Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities
RBI scheme that lets small investors apply for government securities without naming a price. They get the bond at the average rate that big bidders settle on. Open it if you want to know how a small investor can take part.
www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12193&Mode=0 - RBI Retail Direct portal
RBI's free online platform where individuals can open an account and buy government bonds and Treasury bills directly, without a broker. A simple way for ordinary savers to take part in these auctions.
rbiretaildirect.org.in/ - RBI forms page
A list of RBI forms. It is where the paper bid form can be downloaded. Paper bids are accepted only if the electronic system fails, so most readers can ignore it.
www.rbi.org.in/Scripts/BS_ViewForms.aspx - RBI circular on underwriting of government securities (November 14, 2007)
The circular that sets the underwriting scheme: Primary Dealers (banks and firms that specialise in government bonds) promise to bid for a share of each auction. Open it to see how the commitments and commission work.
www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3936&Mode=0 - Master Direction on Repurchase Transactions (Repo), 2025
RBI's rulebook for repo deals, where one party sells securities and agrees to buy them back later. The release says these bonds can be used in such deals.
www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12920 - RBI circular on "When Issued" transactions (July 24, 2018)
RBI guidelines on trading a bond in the days before it is formally issued, based on the price it is expected to fetch at the auction.
www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11344&Mode=0 - Fully Accessible Route for non-resident investment
RBI page on the route that lets foreign investors buy certain government bonds without a cap. The release notes that foreign investment in these bonds follows these rules.
www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=3876
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.