There is good news for people looking for safe investment options. The Reserve Bank of India (RBI) is going to auction government bonds worth ₹32,000 crore on Friday, July 10. These bonds are being auctioned on behalf of the Government of India and the entire auction process will be conducted digitally. The special thing is that through this auction the government is re-issuing two bonds already present in the market. A major characteristic of government bonds as investments is their safety; These offer fixed interest rates and are paid into the investors’ accounts every six months.
First Bond: ₹21,000 crore – Interest Rate: 6.36% – Maturity: February 16, 2031
Second Bond: ₹11,000 crore – Interest Rate: 7.71% – Maturity: May 18, 2066
**Bidding Schedule and Results**
Online bids will have to be submitted through RBI’s e-Kuber system on July 10. Non-competitive bids can be submitted between 10:30 am to 11:00 am, while competitive bids can be submitted between 10:30 am to 11:30 am. Successful bidders will have to make payment by 13th July. The results of the auction will be declared on July 10 only.
**Investment opportunity for general public**
The general public is also being given the opportunity to invest in government bonds; Small investors can also participate in bidding. However, the minimum investment starts from ₹10,000 and subsequent bids should be in multiples of ₹10,000. It is worth noting that the government has reserved 5% of the total released amount for non-competitive bidding. Investors from the general public can submit their bids through the Retail Direct portal of RBI.
