Govt to swap ₹20,000 crore of short bonds for longer ones on October 19
RBI will run a switch auction on October 19 in which investors can exchange six bonds due in 2027 to 2029 for bonds due in 2033 to 2060.
Official title: Conversion/Switch of Government of India Securities · Press Release 2026-2027/1328
What happened
The government announced a conversion or switch auction for ₹20,000 crore on October 19, 2026. A switch lets investors hand back bonds that fall due soon (the "source" bonds) and receive bonds that fall due much later (the "destination" bonds).
The six pairs are: 8.26% GS 2027 (₹2,000 crore) into 7.19% GS 2060; 7.17% GS 2028 (₹3,000 crore) into 7.41% GS 2036; 7.06% GS 2028 (₹3,000 crore) into 7.23% GS 2039; 7.26% GS 2029 (₹4,000 crore) into 6.64% GS 2035; 6.03% GS 2029 (₹4,000 crore) into 7.50% GS 2034; and 6.79% GS 2029 (₹4,000 crore) into 7.57% GS 2033.
The point is to spread out the government's repayments. Without a switch, many bonds fall due in 2027 to 2029 and the government would need to find a lot of money in those years. Moving some into later years smooths the load. Bids go through the e-Kuber system on October 19 and settlement is on October 21.
What it means for you
No direct effect on individuals. It is a debt management step by the government.
What it means for businesses
Banks, insurers and primary dealers holding the source bonds can swap them. The destination bonds run longer, so holders take on a longer-dated bond.
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.