Document title: Auction of State Government Securities
Issuing authority: Reserve Bank of India
Reference: Press Release 2026-2027/1048
Date: 04 September 2026
Capital Markets and Flows
The RBI announced an auction of State Government Securities (SGS) amounting to ₹16,900 crore. The offering comprises re‑issues and new issues from ten states/UTs. Andhra Pradesh will re‑issue three bonds of ₹1,000 crore, ₹1,200 crore and ₹1,600 crore with coupons 7.46 %, 7.65 % and 7.64 % respectively, maturing in 2035, 2043 and 2056. Gujarat will re‑issue two bonds of ₹1,000 crore each with coupons 7.47 % (2036) and 7.59 % (2041). Jammu & Kashmir will re‑issue ₹500 crore at 7.60 % (2038) and also offer a new 18‑year yield‑type issue of ₹500 crore. Maharashtra will re‑issue three bonds of ₹1,000 crore, ₹2,200 crore and ₹2,400 crore with coupons 7.55 %, 7.77 % and 7.79 % maturing in 2034, 2044 and 2054. Punjab will re‑issue ₹1,200 crore at 7.65 % (2043) and also offer new yield‑type issues of ₹800 crore (9‑year) and ₹500 crore (10‑year). Rajasthan will re‑issue ₹1,000 crore at 7.57 % (2035) and a new 22‑year yield‑type issue of ₹1,000 crore. Goa, Meghalaya and Punjab also have pure yield‑type issues of ₹100 crore (10‑year), ₹400 crore (7‑year) and ₹800 crore (9‑year) respectively. The total of all offerings equals ₹16,900 crore.
Regulatory and Policy Measures
The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) on 08 September 2026 (Tuesday). Competitive bids must be entered between 10:30 A.M. and 11:30 A.M.; non‑competitive bids between 10:30 A.M. and 11:00 A.M. Bids may be submitted electronically; in case of system failure, physical bids may be lodged with the Public Debt Office using prescribed forms. The RBI will determine the maximum yield/minimum price; securities will be issued in multiples of ₹10,000 with a minimum lot of ₹10,000. Results will be announced on 08 September 2026, and payment to successful bidders will be made on 09 September 2026 during banking hours at RBI’s Mumbai and regional offices.
Banking and Credit
Investments in the newly issued SGS will be eligible as statutory liquidity ratio (SLR) assets for banks under Section 24 of the Banking Regulation Act, 1949. The securities will also qualify for the ready‑forward facility.
The new SGS will bear interest at rates fixed by the RBI at auction and will pay semi‑annual coupons on 09 March and 09 September each year until maturity. Re‑issued securities will continue to pay interest at the original issue rate on the same semi‑annual schedule.