RBI sets ACU cut-offs for July 24 gilt underwriting auction

The Reserve Bank of India (RBI) has released the results of the underwriting auction conducted on July 24, 2026 for Additional Competitive Underwriting (ACU) of two Government of India securities. The announcement sets the cut-off rates for underwriting commission payable to Primary Dealers (PDs), an important step that helps ensure orderly participation and confidence ahead of the securities’ sale.

Underwriting auctions are a routine part of India’s government securities (G-Sec) issuance framework. They help the government raise funds in a predictable manner while providing clarity to market participants on the cost of underwriting support.

What the underwriting results show The RBI’s results cover two securities: a new Government Security maturing in 2041 and an existing 7.43% Government Security maturing in 2076.

For **New GS 2041**, the **notified amount** is **₹17,000 crore**. The **Minimum Underwriting Commitment (MUC)** stands at **₹8,505 crore**, while the **Additional Competitive Underwriting amount accepted** is **₹8,495 crore**. Together, these add up to a **total amount underwritten of ₹17,000 crore**. The **ACU commission cut-off rate** has been set at **0.74 paise per ₹100**.

For **7.43% GS 2076**, the **notified amount** is **₹11,000 crore**. The **MUC** is **₹5,502 crore**, with **ACU amount accepted** at **₹5,498 crore**, resulting in a **total amount underwritten of ₹11,000 crore**. The **ACU commission cut-off rate** is **0.98 paise per ₹100**.

In both cases, the underwriting process has fully covered the notified amount through the combination of mandatory commitments and competitive underwriting accepted. This is a constructive signal for market readiness and the institutional capacity of PDs to support issuances across different maturities.

Understanding ACU and why cut-offs matter Primary Dealers play a designated role in India’s G-Sec market—supporting auctions, providing two-way quotes, and helping deepen liquidity. Underwriting is one of the mechanisms through which PDs backstop issuances: if demand at the main sale falls short, underwriters step in to subscribe.

The **ACU cut-off rate** is essentially the final underwriting commission rate determined through the competitive underwriting process. While these commission rates are small when expressed as paise per ₹100, they are closely watched as they reflect market appetite, perceived risk, and the cost of providing underwriting support at a given time.

The presence of two maturities—one in 2041 and another extending to 2076—also highlights the breadth of the government bond curve. Long-dated securities such as the 2076 bond can be important for investors looking to match long-term liabilities, while intermediate-to-long maturities like 2041 can suit a wider set of portfolio strategies.

Next step: sale of the securities on July 24 The RBI noted that the **auction for the sale of these securities will be held on July 24, 2026**. With underwriting arrangements now finalised and cut-offs announced, the issuance process gains additional transparency for investors and market participants.

Such steps support the broader objective of conducting government borrowing in a stable, well-signalled manner—helpful for financial market planning, price discovery, and maintaining confidence among domestic and institutional investors.

**Why it matters:** Clear underwriting outcomes and published cut-off rates help keep India’s government borrowing programme predictable, strengthen market confidence, and support efficient capital allocation across maturities—key ingredients for steady economic financing and long-term development.