In a move that strengthens the investment options of cooperative banks, the Ministry of Finance has announced that these institutions will be allowed to participate directly in the upcoming auction of Government of India securities.
The auction, scheduled for September 12, 2025, will see the re-issue of two securities – 6.01% GS 2030 and 7.24% GS 2055 – with a total borrowing size of Rs 28,000 crore. While a part of the issue has been reserved for retail investors under the Non-Competitive Bidding Facility, cooperative banks have been given special status due to their statutory obligations.
Unlike individual investors and other institutions that must route bids through aggregators such as scheduled banks or stock exchanges, cooperative banks can place non-competitive bids directly with the Reserve Bank of India (RBI). This direct access ensures faster participation and strengthens their treasury operations.
By allowing cooperative banks to buy government securities more easily, the measure not only enhances their investment portfolio but also provides a safer avenue for deploying surplus funds. It also reflects the government’s recognition of the critical role played by cooperatives in financing agriculture, small businesses, and rural communities.
The securities will be issued on September 15, 2025.
