Policy Rates and Liquidity

The RBI announced an auction of State Government Securities (SGS) with a total face value of ₹21,350 crore. The auction will be conducted on July 07, 2026 (Tuesday) through the RBI’s Core Banking Solution (E‑Kuber) system. The securities will bear interest rates determined at the auction; for newly issued stock, interest will be paid semi‑annually on January 08 and July 08 each year until maturity. Re‑issued securities will continue to pay interest at the rate fixed at their original issue date, also on a half‑yearly basis.

Capital Markets and Flows

The auction covers 13 states/UTs with specific amounts and tenors, including both fresh issues and re‑issues:

  • Bihar: ₹800 crore (9‑year) and ₹1,200 crore (re‑issue of 7.92% SGS 2051 issued 15‑Apr‑2026).
  • Chhattisgarh: ₹250 crore (9‑year) and ₹250 crore (16‑year).
  • Himachal Pradesh: ₹700 crore (13‑year).
  • Jammu & Kashmir: ₹500 crore (12‑year) and ₹500 crore (re‑issue of 7.91% SGS 2046 issued 03‑Jun‑2026).
  • Jharkhand: ₹300 crore (7‑year).
  • Kerala: ₹800 crore (7‑year) and ₹1,000 crore (13‑year).
  • Madhya Pradesh: ₹1,600 crore (18‑year) and ₹2,000 crore (re‑issue of 7.90% SGS 2056 issued 15‑Apr‑2026).
  • Manipur: ₹250 crore (14‑year).
  • Sikkim: ₹200 crore (13‑year).
  • Telangana: ₹1,500 crore (re‑issue of 7.97% SGS 2043 issued 08‑Apr‑2026) and ₹1,500 crore (re‑issue of 8.07% SGS 2056 issued 08‑Apr‑2026).
  • Uttar Pradesh: ₹1,000 crore (6‑year), ₹1,000 crore (16‑year) and ₹1,000 crore (re‑issue of 7.79% SGS 2051 issued 25‑Mar‑2026).
  • Uttarakhand: ₹300 crore (re‑issue of 7.87% SGS 2044 issued 27‑May‑2026).
  • West Bengal: ₹1,000 crore (5‑year), ₹1,500 crore (18‑year) and ₹2,200 crore (26‑year).

Bids may be submitted electronically; competitive bids between 10:30 am and 11:30 am, non‑competitive bids between 10:30 am and 11:00 am. Bidders can submit multiple competitive bids at different yields or prices, but the aggregate bid per bidder must not exceed the notified amount for each state. Yields or prices must be quoted to two decimal places. The minimum lot size is ₹10,000, with subsequent multiples of ₹10,000.

The RBI will determine the maximum yield/minimum price at which bids are accepted. Results will be announced on July 07, 2026, and successful bidders must make payment during banking hours on July 08, 2026 at RBI’s Mumbai office or respective regional offices.

Banking and Credit

Investments in the newly issued State Government Securities will be counted as eligible Government Securities for banks’ Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The securities will also be eligible for the ready‑forward facility, enhancing liquidity for participating banks.

Regulatory and Policy Measures

The auction is governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. In case of technical failures, the Core Banking Operations Team can be contacted via email (cbot@rbi.org.in) or phone (022‑69870466, 022‑69870415). For auction‑related issues, the IDMD Auction Team is reachable at auctionidmd@rbi.org.in or 022‑22702431 / 022‑22705125. If the electronic system fails completely, physical bids may be submitted to the Public Debt Office (bids@rbi.org.in; phones 022‑22603456, 022‑22603457, 022‑22603190) using the prescribed form available on the RBI website.

The auction framework also provides a Non‑competitive Bidding Facility for individual investors through the Retail Direct portal (https://rbiretaildirect.org.in), allowing up to ten percent of each issue to be allotted to eligible individuals and institutions, with a maximum of one percent per single bid.

Overall, the RBI’s auction of ₹21,350 crore of State Government Securities aims to raise fiscal resources, deepen the government securities market, and provide banks with additional SLR‑eligible assets while ensuring transparent and efficient price discovery through the E‑Kuber platform.