The Reserve Bank of India (RBI) has released the state government market borrowings calendar for the July–September 2026 quarter. Total borrowings across all states and Union Territories are expected to reach ₹3,18,816 crore. This release also marks a significant expansion of RBI’s Benchmark Issuance Strategy.
RBI Expands Benchmark Issuance Strategy for State Borrowings
RBI first launched the Benchmark Issuance Strategy (BIS) as a pilot in Q1 FY2026-27. Nine states participated initially — Andhra Pradesh, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, and Uttar Pradesh. The strategy aims to improve transparency and give investors greater clarity on state debt issuances.
Building on that early experience, RBI is now extending BIS to ten more regions. These include Delhi, Himachal Pradesh, Jharkhand, Manipur, Meghalaya, Odisha, Punjab, Sikkim, Uttarakhand, and West Bengal. Therefore, a total of 18 states and the Union Territory of Delhi will operate under the BIS framework from Q2 FY2026-27 onwards.
Under BIS, states issue securities in pre-announced benchmark tenor buckets. As a result, investors can plan their participation more efficiently. Additionally, remaining states and UTs are also expected to adopt BIS in the coming quarters.
Key Details of the Q2 FY2026-27 Borrowing Calendar
RBI prepared the indicative borrowing calendar in consultation with all participating states and UTs. The calendar is split into two parts — one for BIS-adopting states and one for the remaining states. However, both groups follow a structured, pre-announced schedule.
The actual borrowing amounts may vary from these indicative figures. For example, each auction’s final details depend on individual state requirements, approval from the Government of India under Article 293(3) of the Constitution, and prevailing market conditions. RBI will announce specific auction details two to three days before each auction date.
Meanwhile, RBI has stated it will conduct all auctions in a non-disruptive manner. The central bank also aims to distribute borrowings evenly throughout the quarter. Furthermore, RBI reserves the right to modify auction dates and amounts in consultation with the respective state governments and UTs.
These state government market borrowings form a critical part of India’s sub-national fiscal management. Investors and market participants should track the official RBI auction notices closely for confirmed figures.
Source: RBI Press Releases
