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RBI Sets ACU Commission Cut‑off Rates for GS 2031 & GS 2066

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Issued by RBI: 10 Jul 2026
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📄 Source: Reserve Bank of India · Press Release prid 63118
Quick answerOn July 10, 2026 the RBI released the outcome of its underwriting auction, fixing the commission cut‑off for primary dealers at 0.27 paise per ₹100 for GS 2031 and 0.66 paise per ₹100 for GS 2066, covering total issues of ₹21,000 cr and ₹11,000 cr respectively (RBI Press Release, 10 July 2026).

What changed

The RBI announced the final commission ceiling that primary dealers can earn on the Additional Competitive Underwriting of two government securities. The cut‑off rates are 0.27 paise per ₹100 for the 2031 issue and 0.66 paise per ₹100 for the 2066 issue.

What it means for you

Banks acting as primary dealers must price their bids within these commission limits, which directly affect their underwriting margins. The lower rate for GS 2031 may tighten profitability, while the higher rate for GS 2066 offers relatively better earnings potential.

The rule, in the simplest words
  • The RBI (India's central bank) set a maximum commission (fee) for banks that help sell government bonds: 0.27 paise (very small amount) for every ₹100 of the 2031 bond, and 0.66 paise for every ₹100 of the 2066 bond.
  • Banks called 'primary dealers' must not charge more than these cut-off rates when they promise to buy any unsold bonds in the auction.
  • The total amount of bonds being sold is ₹21,000 crore for the 2031 bond and ₹11,000 crore for the 2066 bond.
  • These commission rates affect how much profit banks can make from underwriting (guaranteeing to sell) these bonds.
How it plays out — a real example

A gold-loan officer in Indore, who also handles government securities for her bank's treasury, checks the new RBI press release. She sees that for the 6.36% GS 2031 bond, her bank can earn only 0.27 paise per ₹100 as commission, so she updates her underwriting model to ensure bids stay within that limit, keeping her team's pricing competitive and avoiding losses.

What you must do

Who it affects

Primary dealers, Bank treasury departments, Government securities trading desks

What does the ACU commission cut‑off rate represent?

It is the maximum underwriting commission per ₹100 of face value that primary dealers may receive for successfully underwriting the specified government security.

How will these rates impact my bank’s underwriting profit?

Your profit margin will be bounded by the stated rates; lower caps reduce earnings per crore underwritten, while higher caps allow greater commission income, subject to market demand and bid pricing.

Test yourself

Quick self-check built only from the facts already on this page — tap a question to reveal the answer.

Q1. In one line, what does this circular do?

On July 10, 2026 the RBI released the outcome of its underwriting auction, fixing the commission cut‑off for primary dealers at 0.27 paise per ₹100 for GS 2031 and 0.66 paise per ₹100 for GS 2066, covering total issues of ₹21,000 cr and ₹11,000 cr respectively (RBI Press Release, 10 July 2026).

Q2. Who does this circular apply to?

Primary dealers, Bank treasury departments, Government securities trading desks

Q3. What is the first thing you should do about it?

Update underwriting models to reflect the new commission caps.

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Who does what — compliance checklist
⚙️ Operations
  • Monitor actual commission earned against the ceiling during settlement.
💰 Credit
  • Update underwriting models to reflect the new commission caps.
📜 Compliance
  • Communicate the cut‑off rates to treasury and sales teams.
  • Adjust bid pricing strategies to stay competitive within the limits.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Credit Manager at a bank this circular applies to (Primary dealers, Bank treasury departments, Government securities trading desks), your first concrete step on “RBI Sets ACU Commission Cut‑off Rates for GS 2031 & GS 2066” is: “Update underwriting models to reflect the new commission caps.” (RBI issued this 10 Jul 2026).

  1. Circular: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63118 -- RBI Sets ACU Commission Cut‑off Rates for GS 2031 & GS 2066
  2. Issued: 10 Jul 2026
  3. Action required: Update underwriting models to reflect the new commission caps.
  4. Action required: Communicate the cut‑off rates to treasury and sales teams.
  5. Action required: Adjust bid pricing strategies to stay competitive within the limits.
  6. Action required: Monitor actual commission earned against the ceiling during settlement.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · 1-model AI consensus fact-check · under the editorial review of our expert review panel · decoded & published by BankPulse · 10 Jul 2026, 10:54 IST
Official RBI source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63118 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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