Govt to borrow ₹33,000 crore via 2031 and 2066 bonds on October 23
The government will sell ₹19,000 crore of 6.53% GS 2031 and ₹14,000 crore of 7.71% GS 2066 at an RBI auction on October 23.
Official title: Auction of Government of India Dated Securities · Press Release 2026-2027/1354
What happened
The Government of India announced the re-issue of two bonds for ₹33,000 crore: ₹19,000 crore of the 6.53% GS 2031, due on September 7, 2031, and ₹14,000 crore of the 7.71% GS 2066, due on May 18, 2066. The auction is on Friday, October 23, 2026, with payment on October 26. The government may keep up to ₹2,000 crore extra on each bond.
Bids go through e-Kuber, non-competitive from 10:30 to 11:00 am and competitive from 10:30 to 11:30 am. It is a multiple-price auction and the result comes the same day. Primary Dealers bid for the underwriting portion between 9:00 and 9:30 am.
Up to 5% of each bond is set aside for small investors, who get the weighted average rate. Individuals can bid via RBI Retail Direct. The bonds can trade "when issued" from October 21 to 23.
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, insurers and pension funds are the main buyers. The bond due in 2066 will interest funds with very long-term liabilities.
Links in this release, explained
- Government of India specific notification, October 19, 2026
The Finance Ministry's formal notice authorising this sale of the 6.53% GS 2031 and 7.71% GS 2066, with amounts and terms. It is the legal basis for the auction.
rbidocs.rbi.org.in/rdocs/content/pdfs/GSEC19102026_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.