What changed
RBI announced the results of an underwriting auction for Additional Competitive Underwriting (ACU) of two government securities. The cut-off rates for underwriting commission payable to Primary Dealers were set: 0.30 paise per ₹100 for the 6.68% GS 2040 (notified amount ₹17,000 crore) and 0.78 paise per ₹100 for the 7.43% GS 2076 (notified amount ₹11,000 crore). Total underwritten amounts matched the notified amounts for both securities.
What it means for you
Primary Dealers have fully underwritten both securities, ensuring the government's borrowing program proceeds smoothly. Banks and lenders can expect stable primary market conditions for these securities.
What you must do
- Monitor the auction results for the sale of these securities on June 25, 2026, to assess market demand.
- Review your own underwriting commitments and adjust bidding strategies for future ACU auctions.
- Use the cut-off commission rates as benchmarks for pricing similar tenor government securities in secondary markets.
Who it affects
Primary Dealers, Banks participating in government securities auctions, Lenders with exposure to government securities
What is the cut-off commission rate for the 6.68% GS 2040?
The cut-off rate is 0.30 paise per ₹100, as per the RBI press release dated June 25, 2026.
Were the full notified amounts underwritten for both securities?
Yes, the total amount underwritten for each security matched the notified amount: ₹17,000 crore for the 6.68% GS 2040 and ₹11,000 crore for the 7.43% GS 2076.