Capital Markets and Flows

The Reserve Bank of India (RBI) announced an auction of State Government Securities (SGS) with a total face value of ₹16,750 crore. The securities are offered by the following states and union territories:

  • Andhra Pradesh: ₹1,000 crore (7.56% SGS 2039, issued 01‑Jul‑2026) and ₹1,600 crore (7.68% SGS 2051, issued 29‑Jul‑2026) – price‑based auction.
  • Goa: ₹150 crore, 15‑year tenor – yield‑based auction.
  • Gujarat: ₹1,000 crore (7.47% SGS 2036) and ₹1,000 crore (7.59% SGS 2041) – price‑based auction, both issued 27‑Aug‑2026.
  • Jammu and Kashmir: ₹600 crore (7.75% SGS 2044, issued 09‑Sep‑2026) – price‑based auction.
  • Maharashtra: ₹1,000 crore (7.09% SGS 2031), ₹2,400 crore (7.63% SGS 2039), and ₹1,600 crore (7.70% SGS 2049) – all price‑based, issued 27‑Aug‑2026.
  • Punjab: ₹500 crore (5‑year tenor) and ₹1,500 crore (15‑year tenor) – yield‑based auction.
  • Rajasthan: ₹2,200 crore (7.68% SGS 2044, issued 29‑Jul‑2026) and ₹2,200 crore (7.65% SGS 2053, issued 01‑Jul‑2026) – price‑based auction.

The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) on September 22, 2026 (Tuesday). Competitive bids must be submitted between 10:30 A.M. and 11:30 A.M., while non‑competitive bids are accepted between 10:30 A.M. and 11:00 A.M.. Bids may be placed in electronic format; only in the event of a system failure will physical bids be entertained, to be submitted to the Public Debt Office in the prescribed form before the auction timing ends.

The RBI will determine the maximum yield or minimum price at which bids are accepted. Each security will be issued in a minimum nominal amount of ₹10,000 and in multiples thereof.

Results of the auction will be announced on the same day, September 22, 2026, and payment to successful bidders will be made on September 23, 2026 (Wednesday) during banking hours at RBI’s Mumbai office and regional offices.

Regulatory and Policy Measures

The newly issued State Government Stocks will bear interest at rates determined by the RBI at the auction. For new issues, interest will be paid semi‑annually on 23 March and 23 September of each year until maturity. Re‑issued stocks will continue to pay interest at the rate fixed at the original issue date, also on a half‑yearly basis.

These securities are eligible investments for banks under the Statutory Liquidity Ratio (SLR) as per Section 24 of the Banking Regulation Act, 1949, and qualify for the ready‑forward facility. The securities are governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007.

Banking and Credit

Because the State Government Securities qualify for SLR, banks can include them in the statutory liquidity pool, thereby influencing their liquidity management and credit allocation decisions.

Contact and Assistance

For technical issues with the E‑Kuber system, bidders may contact the Core Banking Operations Team at cbot@rbi.org.in or phone 022‑69870466 / 022‑69870415. Auction‑related queries can be directed to the IDMD Auction Team at auctionidmd@rbi.org.in or phone 022‑22702431 / 022‑22705125. Physical‑bid submissions, if required, should be sent to the Public Debt Office at bids@rbi.org.in or phone 022‑22603456 / 022‑22603457 / 022‑22603190.

The auction notice is signed by Ajit Prasad, Deputy General Manager, RBI.