The Reserve Bank of India has announced a state government securities auction worth ₹23,300 crore on October 27, 2026. Thirteen state governments will participate in this major bond sale. The auction will run on the RBI’s E-Kuber platform.
Key Details of the State Government Securities Auction
Tamil Nadu leads the borrowing with ₹9,000 crore spread across four re-issued securities. Uttar Pradesh follows closely with ₹3,500 crore across three tranches. Additionally, Keralam will raise ₹1,500 crore through a fresh 14-year yield-based auction.
Other participating states include Assam, Bihar, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Manipur, Nagaland, Sikkim, and Uttarakhand. Most states are re-issuing existing securities at price-based auctions. However, Assam, Bihar, Nagaland, and Keralam will issue new stocks through yield-based auctions.
Competitive bids must be submitted between 10:30 AM and 11:30 AM. Non-competitive bids, meanwhile, must arrive by 11:00 AM. Both types of bids must be placed electronically on the E-Kuber system.
What This Means for Investors and Banks
Individual investors can participate through RBI’s Retail Direct portal at rbiretaildirect.org.in. The non-competitive bidding scheme allows eligible individuals to receive up to 10% of each stock’s notified amount. As a result, retail participation in state bonds becomes more accessible.
Banks benefit directly from these securities. Therefore, investments in state government stocks count as eligible assets under the Statutory Liquidity Ratio (SLR) requirements of the Banking Regulation Act, 1949. The stocks also qualify for the ready forward facility.
The minimum investment amount is ₹10,000, with additional investments in multiples of ₹10,000. Auction results will be announced on October 27, 2026 itself. Successful bidders must make payments during banking hours on October 28, 2026 at Mumbai or respective RBI regional offices.
Interest on new stocks will be paid half-yearly on April 28 and October 28 each year. For re-issued securities, however, interest rates remain those fixed at the time of original issue. All stocks fall under the Government Securities Act, 2006 and related regulations.
Source: RBI Press Releases
