Primary dealers asked to back ₹33,000 crore bond sale on Oct 1
Before the October 1 bond auction, RBI set what each Primary Dealer must underwrite: ₹72 crore to ₹286 crore a bond, as a safety net for the government.
Official title: Underwriting Auction for sale of Government Securities for ₹33,000 crore on October 01, 2026 · Press Release 2026-2027/1217
What happened
This notice sets up a safety net for the ₹33,000 crore bond auction on October 1, 2026. Primary Dealers, firms and banks that specialise in government bonds, promise to buy any part of the sale that other investors do not take. This is called underwriting.
Each dealer must take on a minimum amount in each bond: ₹215 crore for the 6.20% bond due 2029, ₹286 crore for the 6.57% 2033, ₹215 crore for the 7.63% 2056 and ₹72 crore for the 7.50% green bond 2056. Dealers also bid in a short auction (9:00 to 9:30 a.m. on October 1) to take extra underwriting. The winning dealers are paid a commission. This is a routine step before each large auction.
What it means for you
There is no effect on ordinary people.
What it means for businesses
Primary Dealers earn a commission for underwriting and must be ready to buy unsold bonds. The system helps ensure the government can raise its money.
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.