The Reserve Bank of India has announced a state government securities auction worth ₹25,100 crore on October 6, 2026. Thirteen states and union territories will participate in this significant borrowing exercise. Investors across India can now plan their bids ahead of the Tuesday auction.
Key Details of the State Government Securities Auction
A total of 13 states and UTs will raise funds through this auction. These include Maharashtra, which is raising the largest share at ₹7,200 crore. Other major participants include Madhya Pradesh (₹3,000 crore), Rajasthan (₹1,900 crore), Telangana (₹2,500 crore), and Karnataka (₹2,000 crore).
Additionally, states like Andhra Pradesh, Delhi, Punjab, and West Bengal will re-issue existing securities at fixed coupon rates via price-based auctions. Meanwhile, states such as Goa, Jammu and Kashmir, Meghalaya, and Karnataka are issuing new securities through yield-based auctions. Therefore, bidders must carefully review each state’s auction type before placing bids.
The auction will run on RBI’s E-Kuber system. Competitive bids must be submitted between 10:30 AM and 11:30 AM. Non-competitive bids close earlier, at 11:00 AM. Results will be announced the same day, and successful bidders must make payment on October 7, 2026.
What This Means for Investors and Banks
Individual investors can participate through RBI’s Retail Direct portal at rbiretaildirect.org.in. However, each single bid cannot exceed one per cent of the notified amount per stock under the non-competitive bidding scheme. Up to ten per cent of each stock’s notified amount is reserved for eligible individuals and institutions.
For banks, these state government securities qualify as eligible investments under the Statutory Liquidity Ratio (SLR) framework. As a result, banks often find these instruments attractive for regulatory compliance. Furthermore, the stocks qualify for the ready forward (repo) facility, adding liquidity value.
New stocks will pay interest half-yearly on April 7 and October 7 each year. Re-issued stocks will carry the coupon rate fixed at the time of their original issuance. All stocks fall under the Government Securities Act, 2006, and related regulations. The minimum investment amount is ₹10,000, in multiples of ₹10,000 thereafter.
For technical issues on E-Kuber, investors can contact RBI’s Core Banking Operations Team at 022-69870466 or 022-69870415. For other auction queries, the IDMD Auction Team is reachable at 022-22702431 or 022-22705125.
Source: RBI Press Releases
