Document title: Auction of State Government Securities
Issuing authority: Reserve Bank of India, Department of Communication
Date: July 17, 2026
Policy Rates and Liquidity
The RBI will conduct an auction of State Government Securities on July 21, 2026 (Tuesday) through its Core Banking Solution (E‑Kuber) system. The auction will raise an aggregate face value of ₹21,700 crore. The securities include both new issues and re‑issues, with yields or prices to be determined by the RBI. The maximum yield (or minimum price) at which bids will be accepted will be set by the RBI. The new stock will bear interest at rates determined at the auction, payable half‑yearly on January 22 and July 22 each year until maturity. For re‑issued stock, interest will be paid at the rate fixed at original issuance, also half‑yearly.
Banking and Credit
Investment in the 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 qualify for the ready‑forward facility, enhancing banks’ liquidity management.
Capital Markets and Flows
The auction comprises offerings from twelve states and union territories: Assam (₹1,000 crore, 10‑year yield), Bihar (₹1,000 crore 15‑year yield and ₹1,000 crore 18‑year yield), Chhattisgarh (₹500 crore each of re‑issued 7.83 % SGS 2040 and 7.82 % SGS 2048), Delhi (₹300 crore 7‑year yield and ₹300 crore re‑issued 7.75 % SGS 2041), Jammu & Kashmir (₹200 crore 7.60 % SGS 2038 and ₹500 crore 7.81 % SGS 2051), Kerala (₹1,000 crore 7.86 % SGS 2042 and ₹1,200 crore 7.83 % SGS 2049), Madhya Pradesh (₹1,000 crore 8‑year yield, ₹1,400 crore 12‑year yield, and ₹2,000 crore re‑issued 7.83 % SGS 2048), Odisha (₹1,000 crore 18‑year yield), Tamil Nadu (₹1,000 crore 7.39 % SGS 2034 and ₹1,000 crore 7.59 % SGS 2041), Uttar Pradesh (₹1,000 crore 7.74 % SGS 2038 and ₹1,600 crore 7.82 % SGS 2046), Uttarakhand (₹400 crore 22‑year yield), and West Bengal (₹1,600 crore 9‑year yield and ₹2,200 crore 21‑year yield). Competitive bids will be accepted between 10:30 AM and 11:30 AM and non‑competitive bids between 10:30 AM and 11:00 AM on the same day. Bids must be submitted electronically; in case of system failure, physical bids may be submitted to the Public Debt Office in prescribed form before the auction deadline. The minimum lot size is ₹10,000, and bids must be in multiples of ₹10,000. The auction results will be announced on July 21, 2026, and payment to successful bidders will be made on July 22, 2026 during banking hours at RBI’s Mumbai office and regional offices.
Regulatory and Policy Measures
The auction follows the Scheme for Non‑competitive Bidding Facility, allowing up to ten percent of the notified amount of each stock to be allotted to eligible individuals and institutions, with a maximum of one percent per single bid. Bids must specify the expected yield per cent per annum or price up to two decimal places. A bidder may submit multiple competitive bids at different rates, provided the aggregate does not exceed the notified amount for each state. Contact details for technical assistance are provided: Core Banking Operations Team (email cbot@rbi.org.in, phones 022‑69870466 / 022‑69870415) and IDMD Auction Team (email auctionidmd@rbi.org.in, phones 022‑22702431 / 022‑22705125). Physical bid submissions should be sent to the Public Debt Office (email bids@rbi.org.in, phones 022‑22603456 / 022‑22603457 / 022‑22603190) using forms available on the RBI website.
The RBI’s July 21 auction of ₹21,700 crore of State Government Securities provides a significant avenue for raising fiscal resources, sets benchmark yields, and offers banks eligible SLR assets, while detailed bidding procedures aim to ensure transparent and efficient market participation.