RBI to Conduct ₹25,000 Crore Government Bond Switch Auction

The Reserve Bank of India has announced a “switch auction” of government bonds worth ₹25,000 crore scheduled for March 2. Under this mechanism, the government replaces short-term bonds that are nearing maturity with new, long-term bonds. This strategic move is designed to reduce the immediate pressure of large debt repayments within a single year by extending the payment deadline further into the future. The auction is set to take place between 10:30 AM and 11:30 AM, with results being declared the same day and the final transaction settlement occurring on March 4.

This proactive step by the central bank is aimed at managing the significant redemption profile expected in the upcoming years. According to RBI data, government bonds worth ₹5.47 lakh crore are set to mature in the 2026-27 financial year. By conducting this switch auction now, the RBI intends to mitigate the potential payment pressure and liquidity strain that could arise during that period, ensuring a more stable and manageable debt maturity schedule for the government.