RBI Opens Bond Auction for Small Investors With Entry From Just Rs 10,000

The Reserve Bank of India (RBI) is auctioning two long-term government securities worth Rs 32,000 crore on August 29, 2025. The securities, 6.68% GS 2040 and 6.90% GS 2065, are equally split at Rs 16,000 crore each.

The Reserve Bank of India (RBI) has announced the auction of two long-term government securities on August 29, 2025. Totaling Rs 32,000 crore, these securities are split equally between 6.68% GS 2040 and 6.90% GS 2065, each valued at Rs 16,000 crore. The settlement date for this auction is September 1, 2025.

Additional Subscription Facility

The central bank has stated that the government reserves the right to retain additional subscriptions up to a total of Rs 2,000 crore for both securities. This allows for the allocation of additional shares based on investor demand.

Auction Procedure

The RBI will conduct this auction through its Mumbai office using the Multiple Price Method. The auction will be held in two categories: competitive and non-competitive.

• Non-competitive auction – 10:30 AM to 11:00 AM.
• Competitive auction – Until 11:30 AM. Auction results will be announced the same evening. Successful bidders must make payment by September 1, 2025.

Underwriting Details

Under the Additional Competitive Underwriting (ACU) section for underwriting government securities, Primary Dealers can underwrite. Bids for this will be accepted electronically on the e-Kuber system on the same day from 9:00 AM to 9:30 AM.

“When Issued” Trading

As per the central bank's current guidelines, these securities will be eligible for When Issued trading from August 26 to August 29, 2025. This allows investors to buy and sell securities before their official release.

Opportunity for Investors

Both eligible individuals and institutions can participate in this auction. In the non-competitive section, up to 5% of the announced amount will be allocated. This facilitates direct participation for small investors.

• Minimum bid amount – Rs 10,000 and its multiples.
• Retail investors – Can participate in the non-competitive section through RBI's Retail Direct Portal.

Allocation Rule

Securities successfully acquired under the non-competitive section will be allocated based on the Weighted Average Yield generated in the competitive auction. This provides an additional benefit to retail investors. This government bond auction by RBI is considered a reliable opportunity for long-term investors. Pension funds, insurance companies, and individual investors, in particular, can invest in these securities for low risk and stable returns. As government securities are always a safe investment category, it is essential for investors to pay attention to this auction on August 29.