The Reserve Bank of India has announced a state government securities auction worth ₹21,350 crore on July 7, 2026. Thirteen states and union territories will participate in this major bond sale. The auction will run on RBI’s E-Kuber platform, as usual.
Key Details of the State Government Securities Auction
West Bengal leads the borrowing with ₹4,700 crore across three tenors of 5, 18, and 26 years. Madhya Pradesh follows closely, raising ₹3,600 crore through both fresh yield-based bonds and a re-issue. Additionally, Telangana will re-issue two existing securities, totalling ₹3,000 crore. Uttar Pradesh plans to raise ₹3,000 crore across three separate instruments.
Other participating states include Bihar (₹2,000 crore), Kerala (₹1,800 crore), Himachal Pradesh (₹700 crore), Jharkhand (₹300 crore), Jammu and Kashmir (₹1,000 crore), Chhattisgarh (₹500 crore), Manipur (₹250 crore), Sikkim (₹200 crore), and Uttarakhand (₹300 crore). Therefore, this auction represents a broad cross-section of Indian states seeking market borrowings. Tenors range from 5 years to 26 years, offering investors varied duration options.
How to Bid and What Investors Should Know
Competitive bids must reach E-Kuber between 10:30 AM and 11:30 AM on July 7. However, non-competitive bids close earlier, at 11:00 AM. Individual investors can also participate through the RBI Retail Direct portal at rbiretaildirect.org.in. This makes the auction accessible beyond institutional players.
RBI will allot up to 10% of each stock’s notified amount to non-competitive bidders. Meanwhile, a single non-competitive bid cannot exceed 1% of the notified amount per stock. The minimum investment amount is ₹10,000, with bids in multiples of ₹10,000 thereafter. As a result, retail participation remains practical and straightforward.
For new stocks, interest payments will be made half-yearly on January 8 and July 8 each year until maturity. Re-issued stocks will continue paying interest at their original coupon rates. Auction results will be announced on July 7, 2026, and successful bidders must make payment by July 8, 2026. These securities qualify as SLR-eligible investments for banks under Section 24 of the Banking Regulation Act, 1949.
For technical issues on E-Kuber, contact the Core Banking Operations Team at 022-69870466 or 022-69870415. For other auction queries, reach the IDMD Auction Team at 022-22702431. View the official RBI press release here.
Source: RBI Press Releases
