Document title: Conversion/Switch of Government of India Securities
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/1128
Date: September 16, 2026
Capital Markets and Flows
The Government of India announced a conversion/switch of its securities through an auction with an aggregate face‑value amount of ₹30,000 crore. The source securities to be offered include 8.26% GS 2027 (₹2,000 cr), 7.06% GS 2028 (₹4,000 cr), 8.60% GS 2028 (₹4,000 cr), 7.26% GS 2029 (₹4,000 cr), 7.10% GS 2029 (₹5,000 cr), 7.04% GS 2029 (₹4,000 cr), 6.45% GS 2029 (₹2,000 cr) and 7.88% GS 2030 (₹5,000 cr). The destination securities are longer‑dated bonds such as 7.19% GS 2060, 6.79% GS 2034, 7.50% GS 2034, 7.40% GS 2035 and 6.64% GS 2035. Bids are to be placed on the RBI’s Core Banking Solution (e‑Kuber) on September 21, 2026 (Monday) between 10:30 AM and 11:30 AM. The auction follows a multiple‑price mechanism; successful bids are accepted at their quoted prices for both source and destination securities. Results will be announced on the same day, and settlement will occur on September 22, 2026 (Tuesday) on a T+1 basis.
Regulatory and Policy Measures
The auction operates through the Switch Transaction module on e‑Kuber. Each bid must specify the face‑value amount of the source security to be sold, the price of the source security (which must equal the FBIL closing price of the previous working day), the chosen destination security, and the price of the destination security, both expressed to two decimal places. The minimum bid size is ₹10,000 and must be in multiples of ₹10,000. Bids exceeding the participant’s holdings of the source security will be rejected. The auction cut‑off price is determined based on the destination security price; bids at or above the cut‑off are successful, with pro‑rata allotment applied if multiple bids meet the cut‑off. The switch ratio (source price ÷ destination price) is rounded to eight decimal places; the amount of destination security issued is the product of the allotted source face value and the rounded switch ratio, then rounded down to the nearest ₹10,000. Any odd amount (less than ₹10,000) is notionally allotted and bought back at the quoted destination price, with the net cash consideration calculated using the clean price. Although the conversion is broadly cash‑neutral, fund settlement will be made for net accrued interest (accrued interest on source minus accrued interest on destination) plus any cash consideration arising from rounding. Settlement is on a T+1 basis. Technical assistance for e‑Kuber can be obtained from the Core Banking Operations Team, while auction‑related queries should be directed to the IDMD auction team.
The conversion/switch auction provides the Government of India a mechanism to restructure its debt profile by exchanging near‑term securities for longer‑dated instruments, while the RBI facilitates the process through a transparent, electronic, multiple‑price auction framework.