Capital Markets and Flows
The RBI announced an auction of State Government Securities (SGS) with a total face value of ₹20,200 crore. The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) system on August 18, 2026 (Tuesday). Participating states and their respective issue sizes are as follows: Assam – ₹1,000 crore (7.56% SGS 2036); Bihar – two issues of ₹1,000 crore each (7.66% SGS 2041 and 7.71% SGS 2044); Delhi – two issues of ₹500 crore each (7.31% SGS 2033 and 7.75% SGS 2041); Jammu & Kashmir – ₹500 crore (7.91% SGS 2046); Kerala – ₹1,000 crore (7.86% SGS 2042) and ₹1,200 crore (7.83% SGS 2049); Madhya Pradesh – ₹1,000 crore (7.39% SGS 2034), ₹1,400 crore (7.58% SGS 2038) and ₹2,000 crore (yield‑based issue); Mizoram – ₹100 crore; Odisha – ₹1,000 crore (7.70% SGS 2044); Telangana – two issues of ₹1,000 crore each (7.70% SGS 2037 and 7.65% SGS 2055); Uttar Pradesh – two issues of ₹500 crore each (7.74% SGS 2038 and 7.82% SGS 2046); Uttarakhand – ₹300 crore (7.70% SGS 2048); West Bengal – ₹1,500 crore (7.58% SGS 2035) and ₹2,200 crore (7.71% SGS 2047). The total of all issues equals ₹20,200 crore.
Financial Stability and Inclusion
The securities will bear interest at rates determined by the RBI at the auction. For newly issued stock, interest will be paid semi‑annually on February 19 and August 19 each year until maturity. Re‑issued securities will continue to pay interest at the original issue rate on a half‑yearly basis. Each security will have a minimum nominal amount of ₹10,000 and will be issued in multiples of ₹10,000. The securities are eligible as Statutory Liquidity Ratio (SLR) eligible assets for banks under Section 24 of the Banking Regulation Act, 1949, and will qualify for the ready‑forward facility.
Regulatory and Policy Measures
Bids may be submitted in both competitive and non‑competitive formats. Competitive bids must be entered between 10:30 a.m. and 11:30 a.m., while non‑competitive bids must be entered between 10:30 a.m. and 11:00 a.m. on the auction day. All bids are to be submitted electronically via the E‑Kuber system. In the event of technical failure, the Core Banking Operations Team can be contacted at cbot@rbi.org.in or phones 022‑69870466 / 022‑69870415. For auction‑specific issues, the IDMD Auction Team is reachable at auctionidmd@rbi.org.in or phones 022‑22702431 / 022‑22705125. 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.
The RBI will determine the maximum yield (or minimum price) at which bids will be accepted. Bidders may submit multiple competitive bids at different yields or prices, provided the aggregate amount does not exceed the notified amount for each state. Results of the auction will be announced on August 18, 2026, and payment to successful bidders will be made on August 19, 2026 during banking hours at RBI’s Mumbai office and its regional offices.
The auction is conducted under the Government Securities Act, 2006 and the Government Securities Regulations, 2007.
Overall, the RBI’s auction facilitates the raising of ₹20,200 crore for state governments, offers a transparent electronic bidding platform, and ensures that the securities integrate with banks’ liquidity requirements.