The Reserve Bank of India will auction Treasury Bills worth ₹24,000 crore on July 1.

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RBI Treasury Bill Auction 2026

Highlights

The Reserve Bank of India will conduct a multiple price auction of Treasury Bills worth ₹24,000 crore on July 1, 2026.
The auction has a notified amount of ₹9,000 crore for the 91-day T-Bill, ₹8,000 crore for the 182-day, and ₹7,000 crore for the 364-day T-Bill.
For retail investors, non-competitive allocation will be limited to up to 5 percent of the notified amount, while institutional investors will generally receive full allocation.

This article was translated from the original. Read the original version by our correspondent here.

Auction Size and Process

According to the Reserve Bank of India press release, the notified amount is ₹9,000 crore for the 91-day Treasury Bill, ₹8,000 crore for the 182-day Treasury Bill, and ₹7,000 crore for the 364-day Treasury Bill. This auction will be price-based under the multiple price method, and results will be announced on the day of the auction itself.

The auction will be held on Wednesday, July 1, 2026, while successful bidders must make payment on Thursday, July 2, 2026. The sale will be subject to the terms of the Government of India's General Notification F.No.4(2)-B(W&M)/2018 dated March 26, 2025, and subsequent amendments.

Competitive and non-competitive bids must be submitted electronically on the Reserve Bank of India's Core Banking Solution, E-Kuber system. The timing for competitive bids is from 10:30 AM to 11:30 AM, and for non-competitive bids from 10:30 AM to 11:00 AM.

Impact on Retail and Institutional Participation

State governments, Union Territories with legislatures, eligible provident funds of India, designated foreign central banks, and other persons or institutions specified by the bank may participate on a non-competitive basis. Allocation for this category will be outside the notified amount.

Individual investors can also participate as retail investors on a non-competitive basis, though their allocation will be limited to a maximum of 5 percent of the notified amount. Individual investors can also bid through the Retail Direct portal, ensuring retail access to the primary market for government securities.

Physical bids will be accepted only in case of system failure and must be submitted in the prescribed form to the Public Debt Office before the auction closing time. The Core Banking Operations Team is available for technical issues, and the IDMD Auction Team can be contacted for other auction-related difficulties.

Our earlier report discussed the role of high capital costs behind elevated valuations in the Indian stock market, where the nearly 7% risk-free rate on 10-year government bonds and additional risk premium together raise the hurdle for expected equity returns. The report also noted that limited domestic investment options and global capital flows widen the gap between prices and real income potential, allowing foreign investors to benefit from higher valuations.

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