RBI Switch Auction: Govt Buys Back G-Secs Worth Rs 6,309 Cr

Mumbai, Mar 9 (PTI) The government has bought back G-secs worth Rs 6,309 crore from the switch auction conducted by the Reserve Bank of India (RBI), and has issued bonds worth Rs 6,431.797 crore, according to a release.

Government securities (G-Secs) are low-risk debt instruments that are issued by the government and offer fixed returns and are backed by a sovereign guarantee.

The securities repurchased by the government were part of the scheduled bonds set to mature in the next financial year.

These included Rs 1,684 crore of 7.33 per cent GS 2026, Rs 1,035 crore of 5.74 per cent GS 2026, Rs 590 crore of 8.15 per cent GS 2026, and Rs 3,000 crore of 8.24 per cent GS 2027, the release said.

In exchange, the government issued Rs 1,719.236 crore of 6.57 per cent GS 2033, Rs 986.526 crore of 7.62 per cent GS 2039, Rs 605.609 crore of 6.57 per cent GS 2033, and Rs 3,120.426 crore of 7.40 per cent GS 2062, the release added.


This is the fourth switch auction by the RBI since February.

In a bond switch, the government replaces bonds maturing in the near-term with long-term instruments.

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 in smoothening the maturity profile and managing the repayment obligations more effectively.

Prior to this, RBI had conducted three switch auctions and bought back securities worth Rs 98,591.701 crore, RBI data showed.