RBI fixes underwriting commission for govt bonds; PDs fully cover ₹31,000 crore issue

Mumbai: The Reserve Bank of India (RBI) on Friday announced the cut-off rates for underwriting commission payable to primary dealers (PDs) following the underwriting auction for government securities held earlier in the day.

The auction, conducted for Additional Competitive Underwriting (ACU), covered two securities — the 6.01% Government Security 2030 and a new Government Security maturing in 2076. The total notified amount of ₹31,000 crore was fully underwritten, underscoring strong participation from primary dealers.

For the 6.01% GS 2030, against a notified amount of ₹18,000 crore, the minimum underwriting commitment stood at ₹9,009 crore, while ₹8,991 crore was accepted through ACU. The RBI set the cut-off underwriting commission at 0.60 paise per ₹100.

In the case of the new GS 2076, the notified amount was ₹13,000 crore. Of this, ₹6,510 crore was covered under minimum underwriting commitment and ₹6,490 crore through ACU. The cut-off commission for this long-tenor bond was fixed at 1.15 paise per ₹100, reflecting the higher risk associated with longer maturity securities.

The RBI said the auction for the sale of these securities will also be held on January 16, 2026.

Underwriting auctions are conducted to ensure full subscription of government bond issuances, with primary dealers committing to absorb any shortfall. Higher commission rates typically indicate greater risk or lower demand expectations.

The announcement was made by Ajit Prasad, Deputy General Manager, Department of Communication, RBI, through an official press release.