Document title: Auction of State Government Securities
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/795
Date: 31 July 2026
Capital Markets and Flows
The Reserve Bank of India announced an auction of State Government Securities with an aggregate face value of ₹26,850 crore. Seventeen State Governments and Union Territories will sell securities through a mix of price and yield based auctions. The tenors range from 12 to 25 years and coupon rates vary between 7.07 % and 7.92 %. Detailed offerings include re‑issues such as the 7.56 % Assam SGS 2036, 7.42 % Bihar SGS 2035, 7.40 % Chhattisgarh SGS 2035, 7.38 % Gujarat SGS 2035, among many others, with individual amounts ranging from ₹300 crore to ₹1,500 crore.
The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) system on 4 August 2026 (Tuesday). Competitive bids must be entered between 10:30 A.M. and 11:30 A.M., while non‑competitive bids are to be entered between 10:30 A.M. and 11:00 A.M. Bids are to be expressed up to two decimal points for yield or price. Each bidder may submit multiple competitive bids, but the aggregate amount for a given State may not exceed the notified amount. The minimum lot size is ₹10,000 and bids are accepted in multiples of ₹10,000.
Results of the auction will be announced on the same day, 4 August 2026, and payment to successful bidders will be made on 5 August 2026 during banking hours at RBI’s Mumbai office and regional offices.
Regulatory and Policy Measures
The securities will bear interest at rates determined by the RBI at the auction. For newly issued stock, interest will be paid semi‑annually on 5 February and 5 August each year until maturity; re‑issued stock will continue to pay interest at the original issue rate 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 Securities will be eligible for inclusion in banks’ Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949 and will qualify for the ready‑forward facility.
In case of technical difficulties, the Core Banking Operations Team can be contacted at cbot@rbi.org.in or 022‑69870466/022‑69870415. Auction‑related issues may be directed to the IDMD Auction Team at auctionidmd@rbi.org.in or 022‑22702431/022‑22705125. If the electronic system fails, physical bids may be submitted to the Public Debt Office at bids@rbi.org.in or the listed telephone numbers, using the prescribed form available on the RBI website.
Liquidity
The inclusion of the new State Government Securities in the SLR framework enhances the liquidity profile of bank assets and supports the RBI’s broader liquidity management objectives.
The auction framework, bid limits, and settlement timelines are designed to ensure orderly market participation and efficient price discovery for State Government debt instruments.