Document title: Auction of State Government Securities

Issuing authority: Reserve Bank of India

Reference number: Press Release: 2026-2027/844

Date: August 07, 2026

Capital Markets and Flows

The Reserve Bank of India (RBI) has announced that the following State Governments will sell securities by auction for a total face value of ₹15,300 crore. The issuances are as follows:

  • Andhra Pradesh: ₹1,000 crore (9‑year yield auction) and ₹1,200 crore (30‑year price auction) – re‑issue of 7.65 % SGS 2043 issued on 11 Mar 2026.
  • Gujarat: ₹1,000 crore (price auction) – re‑issue of 7.38 % SGS 2035 issued on 15 Jul 2026; and ₹1,500 crore (price auction) – re‑issue of 7.51 % SGS 2038 issued on 15 Jul 2026.
  • Maharashtra: ₹2,400 crore (price auction) – re‑issue of 7.55 % SGS 2034 issued on 22 Apr 2026; ₹2,200 crore (price auction) – re‑issue of 7.77 % SGS 2044 issued on 22 Apr 2026; ₹1,000 crore (price auction) – re‑issue of 7.79 % SGS 2054 issued on 22 Apr 2026.
  • Meghalaya: ₹400 crore (price auction) – re‑issue of 7.72 % SGS 2038 issued on 15 Jul 2026.
  • Punjab: ₹500 crore (price auction) – re‑issue of 7.55 % SGS 2033 issued on 17 Jun 2026; and ₹1,000 crore (yield auction) with a ₹500 crore greenshoe option, tenor 17 years.
  • Rajasthan: ₹700 crore (price auction) – re‑issue of 7.57 % SGS 2035 issued on 17 Jun 2026; and ₹800 crore (price auction) – re‑issue of 7.81 % SGS 2049 issued on 22 Apr 2026.

The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) system on August 11, 2026 (Tuesday).

Banking and Credit

The newly issued State Government Stocks will be eligible as investments in Government Securities for banks to meet the 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 for participating banks.

Regulatory and Policy Measures

Under the non‑competitive bidding facility, up to ten percent of the notified amount of each stock may be allotted to eligible individuals and institutions, with a maximum of one percent per single bid per stock. Individual investors can place bids through the Retail Direct portal (https://rbiretaildirect.org.in). Bids must be expressed to two decimal places for yield or price, and a bidder may submit multiple competitive bids provided the aggregate does not exceed the notified amount for each state. The minimum issue size is ₹10,000, in multiples of ₹10,000.

In case of technical failures, the Core Banking Operations Team (email: cbot@rbi.org.in, phone: 022‑69870466 / 022‑69870415) and the IDMD Auction Team (email: auctionidmd@rbi.org.in, phone: 022‑22702431 / 022‑22705125) can be contacted. If the electronic system fails completely, physical bids may be submitted to the Public Debt Office (email: bids@rbi.org.in, phone: 022‑22603456 / 022‑22603457 / 022‑22603190) using the prescribed form available on the RBI website.

The RBI will determine the maximum yield/minimum price at which bids will be accepted. Auction results will be announced on August 11, 2026 (Tuesday) and payment to successful bidders will be made during banking hours on August 12, 2026 (Wednesday) at Mumbai and the respective RBI Regional Offices. New stock will bear interest at rates determined at the auction, payable semi‑annually on February 12 and August 12 of each year until maturity. Re‑issued stock will continue to pay interest at the original issue rate on the same semi‑annual schedule. All securities will be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007.

The auction provides a significant addition to the marketable debt pool, offers retail participation avenues, and aligns with RBI’s objective of deepening the government securities market while supporting banks’ liquidity and SLR requirements.