Underwriting auction on October 16 for ₹34,000 crore 6.94% GS 2036
Primary Dealers must each promise to cover ₹810 crore of the October 16 bond sale and may bid for more, in return for a commission.
Official title: Underwriting Auction for sale of Government Security for ₹34,000 crore on October 16, 2026 · Press Release 2026-2027/1333
What happened
Before a big bond sale, RBI asks Primary Dealers, the large firms that bid in government auctions, to underwrite it, which means promising to buy any bonds that go unsold. For the ₹34,000 crore sale of 6.94% GS 2036 on October 16, 2026, each dealer has a minimum commitment of ₹810 crore.
Dealers can also bid for extra underwriting in an auction run through e-Kuber from 9:00 to 9:30 am the same morning. Those who win are paid a commission on the day the bonds are issued. It is a routine step that makes sure the government gets its money.
What it means for you
No direct effect on you. It is behind-the-scenes plumbing for the bond auction.
What it means for businesses
Primary Dealers earn a fee for underwriting and take the risk of holding unsold bonds.
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.