India to Auction ₹32,000 Crore in Government Bonds on October 31, 2025: Full Analysis
India’s central bank, the Reserve Bank of India (RBI) will conduct a large government bond auction on October 31st, 2025. The ₹32,000 crore sale is a part of the government’s fund raising target for national development and infrastructure works—a key gauge that institutional and retail investors track to determine impact on the economy and debt markets.
Key Details of the Bond Auction
Instruments on Offer
The RBI will sell four dated Government Securities (G-Secs) in the auction that will have a combined face value of Rs 16,000 crore based on investors’ preference for different maturities. These are:
- 5.91% Government Security 2028 (dated June 30, 2028) – ₹9,000 crore
- 6.28% Government Security 2032 (Maturity: July 14, 2032): Notified amount ₹11,000 crore
- 7.24% Government Security 2055 (Nil) — Maturity Date: August 18, 2055 Notified Amount: ₹7,000 crore
- 6.98% Sovereign Green Bond 2054 (Date of Maturity: December 16, 2054) – Notified amount: ₹5,000 crore
The government also has the option to retain a further subscription of up to ₹2,000 crore per security in case of possibly high market demand which will be over and above the base issue size of ₹32,000 crore.
Auction Method & Bidding
The bonds would be sold through the multiple price method at RBI’s Mumbai office. Competitive and Noncompetitive Bidding: The process for accepting both competitive bids and noncompetitive bids is as follows:
- Competitive Bids: Normally, tendered by major financial institutions that define the yield or price. The successful bidders are alloted securities (as per their bid rates) at the cut-off yield determined in the respective auction.
- Non-Competitive Bids: Garreted for smaller and retail bidders, these are awarded at the weighted average price decided in the auction that ensures a wider participation.
Both kinds of bids should be made electronically through RBI’s e-Kuber system. Bids for the ACU (Additional Competitive Underwriting) segment, which is important for price discovery and risk management, have to be submitted between 9:00 AM and 9:30 AM on auction day.
Further, the auction supports ‘When Issued’ trading from October 28 to 31, 2025, enabling market participants to trade securities prior to formal issuance, thus fostering better price transparency.
Settlement and Results
- Auction Date: October 31, 2025 (Friday)
- Settlement Date: November 3, 2025 (Monday)
- Results Announcement: Same day as auction; payments to be made by successful bidders on settlement day.
Why Is This Auction Important?
Government Strategy and Market Impact
Government securities are key to India’s fiscal management, as the paper is the primary medium through which the government raise resources for infrastructure and social sector expenditure. The ongoing ₹32,000 crore auction is part of the broader borrowing calendar for fiscal year 2025-26, which has a target to raise more than ₹14 lakh crore gross every year to finance developmental works across segments.
The inclusion of a Sovereign Green Bond on offer is a clear demonstration by the government of its support to green projects, it also offers investors an opportunity to invest directly in environmental projects.
Safety and Returns for Investors
G-Secs are known to be one of the safest investments in India, because of being sovereign backed. Investors get guaranteed coupon payments at a regular interval, with the principal being repaid at maturity. So returns are appealing for investors, who are looking for low-risk, steady income opportunities.
Non-Market Maker Retail Investors can participate via Non-Competitive bids, which is particularly helpful for them to use as a tool to keep balanced portfolios without taking a hit from the market’s high volatility pendulum.
Broader Economic Implications
This auction can establish the tone for bond yields in the months ahead, and will shape borrowing costs for both the government and private sector. It’s also very likely to be influenced, and influence expectations over RBI’s monetary policy path — especially with respect to prospective rate cuts, or policy lean backdoors which had been hinted at in previous months.
Conclusion
The upcoming ₹32,000 crore government securities auction scheduled on October 31, 2025, holds significance in relation to India’s fiscal year borrowings, infrastructure financing and the Indian fixed income markets. It provides investors (including both large institutions and retail) with a stable fixed income-positive opportunity, while enabling critical capital raise for national growth projects. A close watch of the auction dynamics and its resulting yields would be critical for market players in the near term to medium time horizon.
Quick Facts Table
| Security | Maturity Date | Notified Amount |
| 5.91% G-Sec 2028 | June 30, 2028 | ₹9,000 crore |
| 6.28% G-Sec 2032 | July 14, 2032 | ₹11,000 crore |
| 7.24% G-Sec 2055 | August 18, 2055 | ₹7,000 crore |
| 6.98% SGrB 2054 (Green Bond) | December 16, 2054 | ₹5,000 crore |
Extra Subscription (max.): ₹2,000 crore per security
Implication for Investors:
This auction is an opportunity for risk-averse investors to gain steady returns with government backing, and for institutions to gauge the direction of yields and monetary policy in India.