The Reserve Bank of India has announced a state government securities auction worth ₹21,700 crore (face value) on July 21, 2026. Twelve state governments and union territories will participate in this sale. The auction will run entirely on RBI’s E-Kuber Core Banking Solution platform.
Key Details of the State Government Securities Auction
A total of 12 states and UTs are offering securities across various tenors. These include Assam, Bihar, Chhattisgarh, Delhi, Jammu and Kashmir, Kerala, Madhya Pradesh, Odisha, Tamil Nadu, Uttar Pradesh, Uttarakhand, and West Bengal. Madhya Pradesh leads with the highest combined borrowing of ₹4,400 crore. West Bengal follows closely, raising ₹3,800 crore across two tranches.
Both yield-based and price-based auctions are on offer. For example, Madhya Pradesh offers yield-based securities of 8 and 12-year tenors, along with a re-issue at a fixed price. Additionally, states like Kerala and Tamil Nadu are conducting only price-based re-issues of existing securities.
Competitive bids must reach E-Kuber between 10:30 AM and 11:30 AM. However, non-competitive bids close earlier, at 11:00 AM. Individual investors can also submit non-competitive bids through the RBI Retail Direct portal at rbiretaildirect.org.in. The minimum investment is ₹10,000, in multiples of ₹10,000 thereafter.
What This Means for Investors and Banks
These state government securities carry significant benefits for institutional buyers. Banks, for instance, can count these investments toward their Statutory Liquidity Ratio (SLR) requirements under Section 24 of the Banking Regulation Act, 1949. Therefore, demand from banks is likely to remain strong at the auction.
Interest on new stocks will be paid half-yearly on January 22 and July 22 each year. For re-issued securities, RBI will pay interest at the rate fixed on the original issue date. As a result, investors in re-issued stock already know their exact coupon rate before bidding.
RBI will announce auction results on July 21, 2026 itself. Meanwhile, successful bidders must complete payment during banking hours on July 22, 2026, at Mumbai or the respective RBI regional offices. All stocks fall under the Government Securities Act, 2006, and also qualify for the ready forward facility.
Source: RBI Press Releases
