Document title: Auction of State Government Securities – RBI Press Release 2026-2027/552
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/552
Date: June 25, 2026
Capital Markets and Flows
The Reserve Bank of India announced an auction of State Government Securities with a total face value of ₹13,600 crore. The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) system on June 30, 2026 (Tuesday). Participating states and their respective issues are as follows: Andhra Pradesh – ₹1,600 crore (13‑year yield auction and re‑issue of 8.07% SGS 2051); Assam – ₹1,000 crore (re‑issue of 7.62% SGS 2046); Punjab – ₹1,000 crore (4‑year yield) and ₹500 crore (13‑year yield); Rajasthan – ₹750 crore (re‑issue of 7.97% SGS 2043) and ₹750 crore (27‑year yield); Telangana – ₹1,000 crore (13‑year yield), ₹2,000 crore (18‑year yield), ₹2,000 crore (23‑year yield) and ₹2,000 crore (29‑year yield). Competitive bids must be submitted between 10:30 A.M. and 11:30 A.M., while non‑competitive bids are to be submitted between 10:30 A.M. and 11:00 A.M. on the same day. Results will be announced on June 30, 2026, and payment to successful bidders will be made on July 1, 2026 during banking hours. The minimum issue size is ₹10,000 and bids must be in multiples of ₹10,000. Yield or price expectations must be quoted up to two decimal places, and a bidder may submit multiple competitive bids provided the aggregate does not exceed the notified amount for each state.
Banking and Credit
Investments in the newly issued State Government Securities will be recognised as eligible government securities for the purpose of meeting the Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The securities will also qualify for the ready‑forward facility, enhancing their utility for banks.
Regulatory and Policy Measures
The auction will be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. RBI will determine the maximum yield or minimum price at which bids will be accepted. For the new stock, interest will be paid semi‑annually on January 1 and July 1 of each year until maturity; re‑issued stock will continue to pay interest at the original issue rate on the same semi‑annual schedule. In case of technical failures, the Core Banking Operations Team (email: cbot@rbi.org.in, phones: 022‑69870466, 022‑69870415) and the IDMD Auction Team (email: auctionidmd@rbi.org.in, phones: 022‑22702431, 022‑22705125) can be contacted. If the electronic system fails completely, physical bids may be submitted to the Public Debt Office (email: bids@rbi.org.in, phones: 022‑22603456, 022‑22603457, 022‑22603190) using the prescribed form available on the RBI website before the auction deadline.
The auction provides a structured avenue for state governments to raise capital, offers investors diversified tenure options, and integrates the securities into the banking system’s liquidity framework.