Govt Buys Back ₹12,686 Crore G-Secs In RBI Switch Auction To Ease Redemption Pressure

Mumbai, April 20: The Government of India bought back government securities (G-secs) worth Rs 12,686.974 crore from the switch auction conducted by the Reserve Bank of India (RBI) on Monday, and issued bonds worth Rs 13,311.383 crore.

Details of securities repurchased

Two securities repurchased by the government were part of the scheduled bonds set to mature later this financial year. These included Rs 2,316 crore of 5.74 per cent GS 2026, and Rs 1,000 crore of 8.24 per cent GS 2027. Other securities repurchased by the government are maturing in FY28, FY29, and FY30.

The government repurchased securities worth Rs 3,000 crore of 6.79 per cent GS 2027, Rs 1,640.594 crore of 8.60 per cent GS 2028, Rs 3,000 crore of 7.59 per cent GS 2029, and Rs 1,730.380 crore of 7.10 per cent GS 2029, the release said.

Bids not accepted for select securities

However, the government did not accept any bids for 6.64 per cent GS 2027, 7.04 per cent GS 2029, and 7.88 per cent GS 2030.

Impact on borrowing and maturity profile

The switch operation is expected to ease redemption pressure in the next financial year, when government bond maturities worth Rs 5.47 lakh crore are due. With gross market borrowing already budgeted at Rs 17.2 lakh crore, the move helps smoothen the maturity profile and manage repayment obligations more effectively.

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The central government budgeted net market borrowing at Rs 11.7 lakh crore for FY27, around Rs 50,000 crore higher than FY26. Gross market borrowing has been set at Rs 17.2 lakh crore, which is sharply higher than the current year. This increase is largely due to higher maturities scheduled for FY27.

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