THEBUSINESSBYTES BUREAU
MUMBAI, FEBRUARY 25, 2026
In a strategic move to recalibrate India’s sovereign debt maturity
profile, the Reserve Bank of India (RBI) on Wednesday announced a ₹25,000
crore switch auction of government securities scheduled for March 2. The
auction will be conducted between
10:30 AM and 11:30 AM, with results to be declared the same day and settlement
slated for March 4, according to an official release.
The operation marks the third switch auction undertaken by the central
bank this month, underscoring an intensified effort to manage looming
redemption pressures. Government bonds worth a sizeable ₹5.47 lakh
crore are set to mature in FY27, and the latest exercise is designed to spread
out these obligations by replacing near-term maturities with longer-tenor
securities.
Under the switch mechanism, securities maturing in FY27 will be exchanged for bonds with maturities extending beyond FY32, thereby easing the immediate repayment burden and creating a more balanced redemption schedule. The move comes at a time when gross market borrowing for the current fiscal has already been budgeted at ₹17.2 lakh crore, making maturity management a critical component of debt strategy.
Data from the RBI show that the central bank has already conducted two such operations this month, buying back securities worth ₹84,804 crore. Market participants view the continued use of switch auctions as a proactive liquidity and debt management tool that helps mitigate refinancing risks, stabilise yields, and enhance investor confidence in the government securities market.
