RBI to conduct Rs 25K cr switch auction on Mar 2

Mumbai: The Reserve Bank of India (RBI) on Wednesday announced that it will conduct a switch auction of government securities worth Rs 25,000 crore on March 2.

The auction will take place between 10:30 AM and 11:30 AM. The result of the auction will be announced on the same day, and settlement will take place on March 4, RBI said in a release.

This is the third switch auction announced by the RBI this month. This operation is expected to reduce the redemption pressure in FY27, when government bonds worth Rs 5.47 lakh crore are due to mature.

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

In the latest exercise, all securities, having maturities in FY27, are being replaced with bonds maturing after FY32, RBI data showed.

With gross market borrowing already budgeted at Rs 17.2 lakh crore, the move helps ease the maturity profile and manage repayment obligations more effectively.

Prior to this, the RBI had conducted two switch auctions and bought back securities worth Rs 84,804 crore, RBI data showed.