Document Title, Issuing Authority, Reference, Date

Auction of State Government Securities

Reserve Bank of India

Press Release: 2026-2027/1238

Date: October 01, 2026

Auction Details

The Reserve Bank of India (RBI) announced that State Governments will sell securities by auction for a total face value of ₹25,100 crore. Thirteen States/UTs are participating, with individual offerings as follows:

  • Andhra Pradesh: ₹1,000 crore each of two re‑issues – 7.46% SGS 2035 (issued 12‑Aug‑2026) and 7.79% SGS 2042 (issued 22‑Apr‑2026).
  • Delhi: ₹500 crore each of two re‑issues – 7.31% SGS 2033 (issued 22‑Jul‑2026) and 7.75% SGS 2041 (issued 24‑Jun‑2026).
  • Goa: ₹200 crore, 8‑year yield‑based issue.
  • Himachal Pradesh: ₹600 crore re‑issue of 7.78% SGS 2044 (issued 24‑Jun‑2026).
  • Jammu & Kashmir: ₹800 crore, 25‑year yield‑based issue.
  • Karnataka: ₹2,000 crore, 8‑year yield‑based issue.
  • Madhya Pradesh: ₹1,000 crore 10‑year yield‑based issue, plus two re‑issues – 7.61% SGS 2044 (issued 08‑Jul‑2026) and 7.75% SGS 2056 (issued 02‑Sep‑2026), each ₹1,000 crore.
  • Maharashtra: Two re‑issues – 7.09% SGS 2031 (issued 27‑Aug‑2026) and 7.63% SGS 2039 (issued 27‑Aug‑2026), each ₹1,500 crore; a 17‑year yield‑based issue of ₹2,000 crore; and a re‑issue of 7.70% SGS 2049 (issued 27‑Aug‑2026) of ₹2,200 crore.
  • Meghalaya: ₹400 crore, 13‑year yield‑based issue.
  • Punjab: ₹500 crore re‑issue of 7.54% SGS 2031 (issued 23‑Sep‑2026) and ₹1,000 crore re‑issue of 7.91% SGS 2041 (issued 23‑Sep‑2026).
  • Rajasthan: ₹1,100 crore re‑issue of 7.87% SGS 2041 (issued 20‑May‑2026) and ₹800 crore re‑issue of 7.76% SGS 2048 (issued 09‑Sep‑2026).
  • Telangana: ₹1,000 crore 20‑year yield‑based issue and ₹1,500 crore 26‑year yield‑based issue.
  • West Bengal: ₹500 crore re‑issue of 7.58% SGS 2035 (issued 22‑Jul‑2026), ₹1,000 crore 15‑year yield‑based issue, and ₹500 crore re‑issue of 7.71% SGS 2047 (issued 22‑Jul‑2026).

The aggregate of all offerings equals ₹25,100 crore.

Bid Submission Process

The auction will be conducted on RBI’s Core Banking Solution (E‑Kuber) on October 06, 2026 (Tuesday). Competitive bids must be entered 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.. Bids are to be submitted electronically; 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‑specific issues, the IDMD Auction Team (email: auctionidmd@rbi.org.in, phones: 022‑22702431, 022‑22705125) is available. 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.

Pricing and Yield Determination

Bidders must quote the expected yield (per cent per annum) or price to two decimal places. A bidder may place multiple competitive bids at different yields or prices, provided the total amount does not exceed the notified amount for each State. RBI will determine the maximum yield (or minimum price) at which bids are accepted. The securities will be issued in a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 thereafter.

Settlement and Payment

Auction results will be announced on October 06, 2026 (Tuesday). Successful bidders must make payment during banking hours on October 07, 2026 (Wednesday) at RBI’s Mumbai office and at its regional offices.

Interest Payment and Eligibility

Newly issued State Government Stocks will bear interest at the rates determined by RBI at the auction, payable semi‑annually on April 07 and October 07 of each year until maturity. Re‑issued stocks will continue to pay interest at the rate fixed on their original issue date, also on a half‑yearly basis. The securities are governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. Investment in these State Government Stocks qualifies as eligible Government Securities for banks’ Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949, and the stocks are eligible for the ready‑forward facility.

Ajit Prasad, Deputy General Manager, signed the release.