Govt to borrow ₹34,000 crore via 6.94% GS 2036 on October 16
The Government of India will sell ₹34,000 crore of the 6.94% bond maturing in 2036 at an RBI auction on October 16.
Official title: Auction of Government of India Dated Security · Press Release 2026-2027/1314
What happened
The government announced a re-issue of the 6.94% GS 2036, which falls due on May 11, 2036, for ₹34,000 crore. The auction is on Friday, October 16, 2026, with payment on October 19. The government may keep up to ₹2,000 crore of extra bids.
Bids go through RBI's e-Kuber system: non-competitive bids from 10:30 to 11:00 am and competitive bids from 10:30 to 11:30 am. It is a multiple-price auction, so each successful bidder pays the price they quoted. Primary Dealers bid for the underwriting portion in the morning.
Up to 5% is set aside for small investors, who get bonds at the average rate. Individuals can bid via RBI Retail Direct. The bond may be traded on a "when issued" basis from October 13 to 16.
What it means for you
If you want to lend to the government, you can bid through RBI Retail Direct without naming a price, and you would get the average rate. Otherwise there is no direct effect on you.
What it means for businesses
Banks and insurers are the main buyers. The yield on a bond of this length is a widely watched benchmark for loan and bond rates.
Links in this release, explained
- Government of India specific notification, October 12, 2026
The Finance Ministry's formal notice authorising this particular sale of the 6.94% GS 2036, with its amount and terms. It is the legal basis for the auction.
rbidocs.rbi.org.in/rdocs/content/pdfs/GSEC12102026_E.pdf - General Notification on sale of Treasury Bills / Government securities (March 26, 2025)
The Government of India's standing rulebook for how its securities are sold at auction: who can bid, how bids are priced and how payment works. Each auction announcement points back to it.
rbidocs.rbi.org.in/rdocs/content/pdfs/GOI26032025_1.pdf - Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities
The RBI circular that lets small investors take part in government auctions without naming a price. They are given bonds or bills at the average rate that emerges from the competitive bids. Read it if you want to know the limits and who qualifies.
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, treasury bills and state bonds directly, with no broker. Start here if you want to invest in these auctions yourself.
rbiretaildirect.org.in/ - RBI forms page (bid forms)
A page on the RBI website listing downloadable forms. The bid form here is only used on paper if the electronic system fails, so most readers can ignore it.
www.rbi.org.in/Scripts/BS_ViewForms.aspx - RBI circular on underwriting commitment (November 14, 2007)
An older RBI circular on the scheme under which Primary Dealers (large bond-trading firms) promise to bid for a set share of each government bond issue, so the sale does not fall short. Useful only if you want the rules behind the underwriting step.
www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3936&Mode=0 - Master Direction on Repurchase Transactions (Repo), 2025
RBI's consolidated rulebook for repo deals, where one party sells a bond and agrees to buy it back later. It is cited in connection with the trading of these securities. Mainly of interest to banks and dealers.
www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12920 - RBI circular on "When Issued" trading (July 24, 2018)
The circular that allows a new bond to be traded for a few days before it is formally issued, in the gap between the announcement and the auction. Of interest mainly to traders.
www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11344&Mode=0 - Fully Accessible Route (FAR)
RBI's route that lets foreign investors buy certain Indian government bonds without any investment cap. It is cited here because bonds in this auction can be eligible under it.
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.