The Reserve Bank of India has announced a state government securities auction worth ₹18,100 crore, scheduled for July 28, 2026 (Tuesday). Seven states will participate in this sale, offering bonds across multiple tenors. The auction will run on the RBI’s E-Kuber Core Banking Solution platform.
Key Details of the State Government Securities Auction
Seven states are raising funds through this auction: Andhra Pradesh, Gujarat, Maharashtra, Punjab, Rajasthan, Tamil Nadu, and Telangana. Maharashtra leads with the largest combined borrowing of ₹5,000 crore, including greenshoe options worth ₹1,250 crore. Rajasthan follows with ₹3,500 crore across two tranches.
Most states are re-issuing existing securities at previously determined coupon rates. However, Rajasthan is also issuing a new 18-year bond through a yield-based auction. Additionally, Andhra Pradesh is re-issuing its 7.56% SGS 2039 bond via a price-based auction. Tenors across all states range from 5 to 29 years.
The RBI will determine the maximum yield or minimum price for accepted bids. Stocks will be issued in minimum denominations of ₹10,000 and multiples thereof. As a result, both retail and institutional investors can participate comfortably.
How Investors Can Bid and What This Means for Banks
Competitive bids must be submitted electronically via E-Kuber between 10:30 AM and 11:30 AM on July 28. Non-competitive bids, meanwhile, must be submitted between 10:30 AM and 11:00 AM. Individual investors can also place non-competitive bids through the RBI Retail Direct portal at rbiretaildirect.org.in.
Up to 10% of each stock’s notified amount is reserved for non-competitive bidders. However, a single bidder cannot exceed 1% of the notified amount per stock. Therefore, retail participation remains accessible but capped to ensure fair distribution.
For banks, these securities qualify as eligible investments under the Statutory Liquidity Ratio (SLR) framework, as defined under Section 24 of the Banking Regulation Act, 1949. They also qualify for the ready forward (repo) facility. This makes state government securities an attractive short-term and long-term portfolio option for Indian banks.
Auction results will be announced on July 28 itself. Successful bidders must make payment during banking hours on July 29, 2026, at Mumbai or at respective RBI regional offices. Interest on new stocks will be paid half-yearly on January 29 and July 29 each year until maturity.
Source: RBI Press Releases
