Document title: Auction of State Government Securities

Issuing authority: Reserve Bank of India (RBI)

Reference: Press Release 2026-2027/1382 (Communications)

Date: October 23, 2026

Capital Markets and Flows

The RBI announced an auction of State Government Securities with a total face value of ₹23,300.00 crore. The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) system on October 27, 2026 (Tuesday). The securities offered by each state are as follows:

  • Assam: ₹1,000 crore, 9‑year tenor, Yield auction.
  • Bihar: ₹1,000 crore, 9‑year tenor, Yield auction; additionally ₹2,000 crore re‑issue of 7.66% Bihar SGS 2041 (price auction).
  • Chhattisgarh: Two re‑issues – ₹600 crore each of 7.83% SGS 2040 (issued 15‑Apr‑2026) and 7.82% SGS 2048 (issued 29‑Apr‑2026), both price auctions.
  • Gujarat: Two re‑issues – ₹1,000 crore each of 7.96% SGS 2035 (issued 14‑Oct‑2026) and 8.06% SGS 2038 (issued 21‑Oct‑2026), price auctions.
  • Himachal Pradesh: ₹400 crore re‑issue of 7.77% SGS 2049 (issued 24‑Jun‑2026), price auction.
  • Jharkhand: ₹200 crore re‑issue of 7.30% SGS 2033 (issued 08‑Jul‑2026), price auction.
  • Kerala: ₹1,500 crore, 14‑year tenor, Yield auction.
  • Manipur: ₹300 crore re‑issue of 7.79% SGS 2042 (issued 10‑Jun‑2026), price auction.
  • Nagaland: ₹300 crore, 9‑year tenor, Yield auction.
  • Sikkim: Two re‑issues – ₹200 crore each of 7.55% SGS 2030 and 7.98% SGS 2042 (both issued 30‑Sep‑2026), price auctions.
  • Tamil Nadu: Four re‑issues – ₹2,500 crore each of 7.80% SGS 2041 (issued 03‑Jun‑2026) and 8.14% SGS 2046 (issued 14‑Oct‑2026); ₹2,000 crore each of 8.21% SGS 2051 and 8.18% SGS 2056 (both issued 14‑Oct‑2026), all price auctions.
  • Uttar Pradesh: Three re‑issues – ₹500 crore of 7.14% SGS 2032 (issued 08‑Jul‑2026), ₹1,000 crore of 7.59% SGS 2042 (issued 08‑Jul‑2026), and ₹2,000 crore of 7.95% SGS 2051 (issued 30‑Sep‑2026), price auctions.
  • Uttarakhand: ₹500 crore re‑issue of 7.64% SGS 2038 (issued 05‑Aug‑2026), price auction.

The total amount raised across all states equals ₹23,300 crore.

Bidding procedures: 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. on the auction day. Bids must be entered electronically on the E‑Kuber platform; in case of technical failure, the Core Banking Operations Team (email: cbot@rbi.org.in, phones: 022‑69870466, 022‑69870415) can be contacted. For auction‑related issues, the IDMD Auction Team (email: auctionidmd@rbi.org.in, phones: 022‑22702431, 022‑22705125) is available. If the 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 from the RBI website before the auction deadline.

Bids must specify the expected yield or price to two decimal places. An investor may submit multiple competitive bids at different rates, but the aggregate amount for each state must not exceed the notified amount. The minimum lot size is ₹10,000, and bids must be in multiples of ₹10,000.

Results of the auction will be announced on October 27, 2026 (Tuesday), and successful bidders will receive payment during banking hours on October 28, 2026 (Wednesday) at RBI’s Mumbai office and its regional offices.

Regulatory and Policy Measures

The newly issued State Government Stocks will bear interest rates determined by the RBI at the auction. Interest on new issues will be paid semi‑annually on April 28 and October 28 each year until maturity. Re‑issued stocks will continue to pay interest at the rate fixed at their original issuance and will also be paid semi‑annually.

These securities are governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. For banks, investment in these State Government Stocks qualifies as an eligible investment in Government Securities for the purpose of meeting the Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The securities also qualify for the ready‑forward facility, enhancing liquidity for market participants.

The RBI has stipulated that up to ten percent of the notified amount of each stock may be allotted to eligible individuals and institutions under the non‑competitive bidding facility, with a maximum limit of one percent for a single bid per stock.

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

Overall, the auction provides a sizable avenue for investors to acquire state‑level debt instruments, reinforces the role of these securities in banks’ SLR compliance, and reflects RBI’s ongoing efforts to deepen the government securities market.