RBI underwriting auction sets 0.33 paise cut-off for 6.94% GS 2036

The Reserve Bank of India (RBI) on Friday released the results of the underwriting auction conducted on **July 31, 2026** for **Additional Competitive Underwriting (ACU)** linked to a Government of India security.

The underwriting relates to the **6.94% Government Security (GS) 2036**, for which the RBI set the **cut-off rate for underwriting commission payable to Primary Dealers (PDs)** at **0.33 paise per ₹100**.

According to the RBI press release (2026-2027/784), the auction for the sale of the security itself is also scheduled to be held on **July 31, 2026**.

What the RBI announced

Underwriting auctions are part of the government securities issuance process, where PDs commit to support the primary auction by underwriting a portion of the notified amount. This helps ensure orderly execution and reinforces confidence in the market’s ability to absorb issuances.

For the **6.94% GS 2036**, the RBI provided the following key figures:

• **Notified amount:** ₹34,000 crore
• **Minimum Underwriting Commitment (MUC):** ₹17,010 crore
• **Additional Competitive Underwriting amount accepted:** ₹16,990 crore
• **Total amount underwritten:** ₹34,000 crore
• **ACU commission cut-off rate:** 0.33 paise per ₹100

In effect, the notified amount was fully covered through underwriting, with the MUC and the accepted ACU together adding up to the entire ₹34,000 crore.

How this supports smooth government borrowing

A well-subscribed underwriting outcome is typically seen as a constructive signal for the government securities market. By having Primary Dealers commit underwriting across the full notified amount, the system creates a buffer that can help the auction process stay stable even if demand conditions fluctuate during the sale.

The **commission cut-off rate** announced by the RBI is the rate at which underwriting commission becomes payable for ACU. While the cut-off is a technical pricing outcome of the underwriting auction, it also indicates how competitively PDs bid to take on underwriting commitments.

For investors and market participants, such operational clarity—covering underwriting commitments, accepted amounts, and commission cut-offs—supports transparency and predictability in India’s borrowing programme.

Key details of the security and next step

The security under reference is **6.94% GS 2036**, a Government of India bond carrying a coupon (interest rate) of **6.94%** and maturing in **2036**.

The RBI noted that the **auction for the sale of the security** will be held on **July 31, 2026**. The underwriting result therefore precedes (and supports) the primary auction where the bond will be issued.

The RBI communication was issued by **Ajit Prasad, Deputy General Manager (Communications)**.

**Why it matters:** A fully underwritten government security issuance is a steadying factor for India’s borrowing programme, helping ensure smoother auctions and reinforcing confidence in the depth and resilience of the domestic bond market.