Capital Markets and Flows

The Reserve Bank of India announced an auction of State Government Securities with a total face‑value of ₹24,400 crore. The auction will be conducted on October 19, 2026 (Monday) through the RBI Core Banking Solution (E‑Kuber) system. The securities offered by the states and Union Territories are as follows:

  • Andhra Pradesh: ₹1,000 crore, re‑issue of 7.68 % SGS 2051 (issued 29 July 2026), price auction.
  • Goa: ₹200 crore, re‑issue of 7.80 % SGS 2037 (issued 16 Sept 2026), price auction.
  • Gujarat: ₹1,000 crore, re‑issue of 7.96 % SGS 2035 (issued 14 Oct 2026), price auction; an additional ₹1,000 crore on a 12‑year tenor, yield auction.
  • Jammu & Kashmir: ₹800 crore, re‑issue of 7.75 % SGS 2044 (issued 9 Sept 2026), price auction.
  • Madhya Pradesh: ₹1,000 crore on a 4‑year tenor, yield auction; ₹2,000 crore, re‑issue of 7.58 % SGS 2038 (issued 22 July 2026), price auction; ₹1,500 crore, re‑issue of 7.66 % SGS 2048 (issued 19 Aug 2026), price auction.
  • Maharashtra: ₹1,500 crore, re‑issue of 7.55 % SGS 2034 (issued 22 Apr 2026), price auction; ₹2,000 crore on a 15‑year tenor, yield auction; ₹2,000 crore, re‑issue of 7.77 % SGS 2044 (issued 22 Apr 2026), price auction; ₹2,500 crore, re‑issue of 7.79 % SGS 2054 (issued 22 Apr 2026), price auction.
  • Meghalaya: ₹100 crore, re‑issue of 8.08 % SGS 2039 (issued 7 Oct 2026), price auction.
  • Punjab: ₹700 crore, re‑issue of 7.75 % SGS 2035 (issued 9 Sept 2026), price auction; ₹800 crore, re‑issue of 7.65 % SGS 2043 (issued 12 Aug 2026), price auction.
  • Rajasthan: ₹1,000 crore on a 10‑year tenor, yield auction; ₹1,500 crore on a 16‑year tenor, yield auction; ₹1,000 crore, re‑issue of 8.06 % SGS (year not specified), price auction.
  • Telangana: ₹1,000 crore, re‑issue of 7.65 % SGS 2039 (issued 1 July 2026), price auction; also SGS 2049 issued 1 July 2026 (amount not separately listed).
  • Tripura: ₹300 crore on an 8‑year tenor, yield auction; ₹500 crore on a 24‑year tenor, yield auction.

The total notified amount across all states equals ₹24,400 crore.

Bids may be submitted electronically on the E‑Kuber platform. Competitive bids are accepted 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. In the event of technical failure, physical bids can be submitted to the Public Debt Office 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. Results will be announced on October 19, 2026, and successful bidders will receive payment on October 21, 2026 during banking hours at RBI’s Mumbai office and regional offices.

Newly issued securities will bear interest rates set at the auction and will pay half‑yearly interest on April 21 and October 21 each year until maturity. Re‑issued securities will continue to pay interest at the rate fixed at their original issue, also on a half‑yearly basis.

Regulatory and Policy Measures

The auction is governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. All bids must express the expected yield or price up to two decimal places. Bidders may submit multiple competitive bids at different rates, but the aggregate amount for each bidder must not exceed the notified amount for the respective state. Each security will be issued in a minimum nominal amount of ₹10,000 and in multiples thereof.

The RBI has provided a Non‑competitive Bidding Facility under which eligible individuals and institutions may bid for up to ten percent of the notified amount of each stock, subject to a maximum of one percent per single bid. Retail investors can also place bids through the Retail Direct portal.

Contact details for auction‑related assistance are: 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 submission, if required, should be directed to the Public Debt Office (email bids@rbi.org.in, phones 022‑22603456 / 022‑22603457 / 022‑22603190).

Banking and Credit

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

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