RBI announces Rs 20,000 crore G-sec switch auction on March 9 to ease upcoming redemption pressure

The Reserve Bank of India (RBI) on Wednesday said it will conduct a switch auction of government securities worth Rs 20,000 crore on March 9 as part of efforts to manage the government’s bond redemption profile.According to an RBI release, the auction will be held between 10:30 am and 11:30 am, as reported PTI. The results will be announced on the same day, while settlement will take place on March 10, 2026.The move is aimed at easing redemption pressure in the next financial year, when government bond maturities totalling Rs 5.47 lakh crore are scheduled.This will be the fourth switch auction announced by the central bank since February.Earlier, the RBI conducted three such operations and bought back securities worth Rs 98,591.701 crore, according to RBI data.Under a bond switch operation, the government replaces bonds that are nearing maturity with longer-term securities, helping to spread repayment obligations over a longer horizon.With gross market borrowing already budgeted at Rs 17.2 lakh crore, the switch auctions are expected to help smooth the maturity profile and manage repayment commitments more effectively.