Capital Markets and Flows

The Reserve Bank of India (RBI) announced an auction of State Government Securities on October 13, 2026 (Tuesday). The auction will be conducted through the RBI Core Banking Solution (E‑Kuber) system and will raise a total face value of ₹31,200 crore. Thirteen state governments are participating, offering a mix of new issues and re‑issues with tenors ranging from 6 to 30 years. The detailed offering is as follows:

  • Assam: ₹1,000 crore, 11‑year yield‑based auction.
  • Bihar: ₹1,000 crore (7.71 % SGS 2044, issued 22 July 2026) and ₹2,000 crore (7.76 % SGS 2051, issued 2 September 2026), price‑based.
  • Chhattisgarh: ₹600 crore (7.40 % SGS 2035, issued 8 July 2026) and ₹600 crore (7.64 % SGS 2042, issued 8 July 2026), price‑based.
  • Gujarat: ₹1,000 crore, 9‑year yield‑based and ₹1,000 crore, 12‑year yield‑based.
  • Haryana: ₹1,000 crore (7.90 % SGS 2040, issued 16 September 2026) and ₹1,500 crore (7.69 % SGS 2048, issued 27 August 2026), price‑based.
  • Karnataka: ₹2,000 crore, 10‑year yield‑based.
  • Kerala: ₹1,000 crore, 6‑year yield‑based.
  • Mizoram: ₹100 crore (7.94 % SGS 2041, issued 16 September 2026), price‑based.
  • Odisha: ₹500 crore (7.16 % SGS 2032, issued 19 August 2026) and ₹500 crore (7.64 % SGS 2040, issued 5 August 2026), price‑based.
  • Tamil Nadu: ₹2,000 crore (20‑year yield), ₹2,000 crore (25‑year yield) and ₹3,000 crore (30‑year yield), all yield‑based.
  • Uttar Pradesh: ₹1,500 crore, 12‑year yield‑based and ₹2,000 crore (7.82 % SGS 2046, issued 10 June 2026), price‑based.
  • Uttarakhand: ₹500 crore, 8‑year yield‑based; ₹500 crore (7.87 % SGS 2044, issued 27 May 2026), price‑based; and ₹500 crore, 26‑year yield‑based.
  • West Bengal: ₹1,000 crore (7.07 % SGS 2031, issued 8 July 2026), price‑based; ₹2,200 crore, 18‑year yield; and ₹2,200 crore, 26‑year yield.

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 must be submitted between 10:30 A.M. and 11:00 A.M.. The RBI will determine the maximum yield or minimum price at which bids are accepted. Bids must be expressed to two decimal places, and each bidder’s aggregate bid for a particular state may not exceed the notified amount. The minimum lot size is ₹10,000, with subsequent multiples of ₹10,000. Results will be announced on the same day, October 13, 2026, and payment to successful bidders will be made on October 14, 2026 (Wednesday) during banking hours at RBI’s Mumbai office and regional offices.

Banking and Credit

The newly issued State Government Securities will be recognised as eligible investments for banks under the Statutory Liquidity Ratio (SLR) provisions of Section 24 of the Banking Regulation Act, 1949. Consequently, banks can include these securities in their SLR calculations. The securities will also be eligible for the ready‑forward facility, enhancing liquidity for participating financial institutions.

Regulatory and Policy Measures

All securities issued under this auction are governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. Interest on the newly issued securities will be paid semi‑annually on April 14 and October 14 of each year until maturity, at rates determined by the RBI at the auction. For re‑issued securities, interest will continue to be paid at the original issue rate on a half‑yearly basis. The auction framework follows the RBI’s ‘Scheme for Non‑competitive Bidding Facility’, allowing eligible individuals and institutions to bid for up to ten percent of the notified amount of each stock, with a maximum of one percent per single bid. Physical bids may be submitted only in the event of a system failure, using prescribed forms available on the RBI website.

The auction reflects the RBI’s ongoing role in facilitating government borrowing and managing liquidity in the debt market, while providing banks with additional SLR‑eligible instruments.