Document title: Auction of State Government Securities

Issuing authority: Reserve Bank of India

Reference number: Press Release: 2026-2027/990

Date: August 28, 2026

Capital Markets and Flows

The Reserve Bank of India (RBI) has announced an auction of State Government Securities (SGS) with a total face value of ₹27,000 crore. The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) system on September 01, 2026 (Tuesday). Fifteen state governments are offering securities, each with specific tenors, coupon rates and auction types (price or yield).

  • Assam: ₹1,000 crore, re‑issue of 7.62 % SGS 2046, price auction.
  • Bihar: ₹800 crore, re‑issue of 7.42 % SGS 2035, price auction; additionally ₹1,200 crore, 25‑year tenor, yield auction.
  • Chhattisgarh: ₹500 crore, re‑issue of 7.40 % SGS 2035, price; and ₹500 crore, re‑issue of 7.64 % SGS 2042, price.
  • Himachal Pradesh: ₹700 crore, re‑issue of 7.56 % SGS 2039, price.
  • Jharkhand: ₹300 crore, 12‑year tenor, yield; and ₹300 crore, 16‑year tenor, yield.
  • Kerala: ₹800 crore, re‑issue of 7.30 % SGS 2033, price; and ₹1,000 crore, re‑issue of 7.56 % SGS 2039, price.
  • Madhya Pradesh: ₹1,600 crore, re‑issue of 7.61 % SGS 2044, price; and ₹2,000 crore, 30‑year tenor, yield.
  • Manipur: ₹100 crore, re‑issue of 7.64 % SGS 2040, price.
  • Odisha: ₹1,000 crore, re‑issue of 6.94 % SGS 2030, price; and ₹1,000 crore, re‑issue of 7.64 % SGS 2040, price.
  • Sikkim: ₹200 crore, re‑issue of 7.58 % SGS 2039, price.
  • Tamil Nadu: ₹1,000 crore, re‑issue of 7.49 % SGS 2036, price; ₹2,000 crore, re‑issue of 7.62 % SGS 2041, price; ₹2,000 crore, re‑issue of 7.70 % SGS 2051, price.
  • Uttar Pradesh: ₹1,000 crore (SGS 2044, price); ₹500 crore (re‑issue of 7.65 % Telangana SGS 2049, price); ₹500 crore (re‑issue of 7.14 % Uttar Pradesh SGS 2032, price); ₹1,000 crore (re‑issue of 7.59 % Uttar Pradesh SGS, price); and an additional ₹1,000 crore (re‑issue of 7.79 % Uttar Pradesh SGS 2051, price).
  • Uttarakhand: ₹300 crore, re‑issue of 7.64 % SGS 2038, price.
  • West Bengal: ₹1,000 crore, re‑issue of 7.07 % SGS 2031, price; ₹1,500 crore, re‑issue of 7.64 % SGS 2044, price; ₹2,200 crore, re‑issue of 7.65 % SGS 2052, price.

The total amount offered across all states is ₹27,000 crore.

Bidding will be electronic on the E‑Kuber platform. 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 September 01, 2026. Under the Scheme for Non‑competitive Bidding Facility, non‑competitive allocations are limited to ten per cent of the notified amount of each issue, with a maximum of one per cent for a single bid. Retail investors may place non‑competitive bids through the Retail Direct portal. In the event of technical failure, physical bids may be submitted to the Public Debt Office using the prescribed form available on the RBI website.

The auction results will be announced on September 01, 2026, and payment to successful bidders will be made on September 02, 2026 during banking hours at RBI’s Mumbai office and regional offices. New securities will bear interest rates determined at the auction and will pay interest semi‑annually on March 2 and September 2 each year until maturity. Re‑issued securities will continue to pay interest at the original coupon rate on the same semi‑annual schedule.

Investments in these State Government Securities will be eligible for inclusion in banks’ Statutory Liquidity Ratio (SLR) calculations under Section 24 of the Banking Regulation Act, 1949, and will qualify for the ready‑forward facility, enhancing banks’ liquidity management.

Regulatory and Policy Measures

The RBI will determine the maximum yield or minimum price at which bids will be accepted. Securities will be issued in a minimum nominal amount of ₹10,000 and in multiples thereof. The issues are governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. The non‑competitive bidding facility is capped at ten per cent of each issue’s notified amount and one per cent per single bid. For technical queries, the Core Banking Operations Team can be contacted via email cbot@rbi.org.in or phone 022‑69870466/022‑69870415. Auction‑related queries may be directed to the IDMD Auction Team at auctionidmd@rbi.org.in or phone 022‑22702431/022‑22705125. Physical bids, if required, should be sent to the Public Debt Office (bids@rbi.org.in) using the form available on the RBI website.

Banking and Credit

Investments in the newly issued State Government Securities will be treated as eligible government securities for the purpose of calculating banks’ Statutory Liquidity Ratio (SLR) under the Banking Regulation Act, 1949, and will be eligible for the ready‑forward facility, thereby supporting banks’ liquidity positions.

The RBI’s September 1 auction of ₹27,000 crore of state government securities provides a substantial funding avenue for multiple states, incorporates both price and yield bidding mechanisms, and reinforces the role of these securities in banks’ liquidity ratios, all within the established legal and regulatory framework.