The Reserve Bank of India has announced a state government securities auction scheduled for June 30, 2026 (Tuesday). Five state governments will collectively raise ₹13,600 crore through this sale. The auction will run on RBI’s E-Kuber platform.
Key Details of the State Government Securities Auction
Andhra Pradesh plans to raise ₹2,600 crore across two tranches — one a fresh 13-year yield-based issuance and another a price-based re-issue of its 8.07% SGS 2051 bond. Assam will raise ₹1,000 crore through a re-issue of its 7.62% SGS 2046 bond. Meanwhile, Punjab will raise ₹1,500 crore split across 4-year and 13-year tenors.
Rajasthan will raise ₹1,500 crore through a mix of a price-based re-issue of its 7.97% SGS 2043 bond and a fresh 27-year yield-based offering. Telangana leads the group, raising ₹7,000 crore across four tenors — 13, 18, 23, and 29 years. Therefore, this auction spans a wide range of maturities, offering investors diverse options.
How Investors Can Participate
Competitive bids must be submitted electronically on E-Kuber between 10:30 AM and 11:30 AM. Non-competitive bids, however, must be placed between 10:30 AM and 11:00 AM on the same day. Individual investors can additionally participate through the RBI Retail Direct portal at rbiretaildirect.org.in.
Up to 10% of each stock’s notified amount will go to eligible individuals under the non-competitive bidding scheme. However, a single bidder cannot place more than 1% of the notified amount per stock. The RBI will determine the final yield or price at which it accepts bids.
Auction results will be announced on June 30, 2026 itself. As a result, successful bidders must make payments during banking hours on July 1, 2026, at Mumbai or at respective RBI regional offices.
What This Means for Banks and Investors
These state government securities qualify as eligible investments under the Statutory Liquidity Ratio (SLR) norms set by Section 24 of the Banking Regulation Act, 1949. Additionally, the stocks qualify for the ready forward (repo) facility. For example, banks can use them to manage short-term liquidity needs effectively.
New stocks will pay interest half-yearly on January 1 and July 1 each year. Re-issued stocks will carry the interest rate fixed at the time of their original issue. All stocks fall under the Government Securities Act, 2006 and the Government Securities Regulations, 2007.
Source: RBI Press Releases
