The securities repurchased by the government were part of the scheduled bonds set to mature in the next financial year.
Government Buys Back ₹6,309 Cr G-sec in RBI's Switch Auction
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
Reserve Bank of India RBI
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These included ₹1,684 crore of 7.33 per cent GS 2026, ₹1,035 crore of 5.74% GS 2026, ₹590 crore of 8.15 % GS 2026, and ₹3,000 crore of 8.24% GS 2027, the release said.
In exchange, the government issued ₹1,719.236 crore of 6.57 % GS 2033, ₹986.526 crore of 7.62% GS 2039, ₹605.609 crore of 6.57 % GS 2033, and ₹3,120.426 crore of 7.40% 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 ₹5.47 lakh crore are due.
With gross market borrowing already budgeted at ₹17.2 lakh crore, the move helps in smoothening the maturity profile and managing the repayment obligations more effectively.
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Prior to this, RBI had conducted three switch auctions and bought back securities worth ₹98,591.701 crore, RBI data showed.