Document title: Auction of State Government Securities – RBI Press Release 2026‑2027/646
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/646
Date: July 10, 2026
Capital Markets and Flows
The Reserve Bank of India announced an auction of State Government Securities (SGS) with a total face value of ₹24,800 crore. Ten state governments – Andhra Pradesh, Gujarat, Maharashtra, Meghalaya, Mizoram, Punjab, Rajasthan, Tamil Nadu, Telangana and others – are offering securities with tenors ranging from 8 to 15 years and coupon rates between 7.35 % and 8.07 %. Specific re‑issues include Andhra Pradesh 7.65 % (2043) and 7.81 % (2056), Maharashtra multiple issues from 7.35 % (2031) to 8.07 % (2049), Punjab 7.55 % (2033) and 7.92 % (2044), Rajasthan 7.57 % (2035) and 7.81 % (2049), and Telangana 7.70 % (2037) and 7.65 % (2055). The auction will be conducted on the RBI Core Banking Solution (E‑Kuber) system on July 14, 2026 (Tuesday).
Banking and Credit
The newly issued State Government Stocks will be eligible as investments for banks to meet the Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. They will also qualify for the ready‑forward facility, enhancing liquidity management for participating banks.
Regulatory and Policy Measures
Bids can be placed in both competitive and non‑competitive formats. 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 the same day. Retail investors may participate under the non‑competitive scheme through the RBI Retail Direct portal, with a maximum allocation of up to ten per cent of the notified amount of each issue and a per‑bid limit of one per cent. The minimum lot size is ₹10,000, in multiples thereof. In case of technical failure, physical bids may be submitted to the Public Debt Office using prescribed forms. The RBI will determine the maximum yield or minimum price at which bids are accepted. Interest on new stocks will be paid semi‑annually on January 15 and July 15 each year until maturity; re‑issued stocks will continue to pay interest at the original coupon rate on the same schedule. All securities are governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. Contact details for technical and auction‑related queries are provided, including email and phone numbers for the Core Banking Operations Team and the IDMD Auction Team.
The auction results will be announced on July 14, 2026, with payment to successful bidders to be made on July 15, 2026 during banking hours at RBI’s Mumbai office and regional offices.
This auction expands the pool of state‑issued securities, offers retail participation, and reinforces the role of these instruments in banks’ liquidity management.