The Reserve Bank of India has expanded its Benchmark Issuance Strategy for state government securities from the second quarter of FY 2026-27, adding more states and the Union Territory of Delhi to the framework.
According to an RBI press release dated June 25, 2026, the framework will now cover Delhi, Himachal Pradesh, Jharkhand, Manipur, Meghalaya, Odisha, Punjab, Sikkim, Uttarakhand and West Bengal from the July to September 2026 quarter.
The strategy was first introduced on a pilot basis in the first quarter of FY 2026-27. The initial group included nine states: Andhra Pradesh, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Telangana and Uttar Pradesh.
What the Benchmark Issuance Strategy means
The RBI said the Benchmark Issuance Strategy was introduced with the objective of improving transparency and giving investors greater clarity. Under the strategy, securities are issued in specific benchmark tenor buckets as per a pre-announced calendar.
With the latest expansion, the framework will cover 18 states and the Union Territory of Delhi. The RBI said the indicative market borrowing calendar for these participating states and Delhi for the July to September 2026 quarter has been prepared in consultation with them and provided in Annex 1 of the release.
For the remaining states and Union Territories, the borrowing calendar has also been prepared in consultation with the respective governments and is provided in Annex 2. The RBI said these states and Union Territories are also expected to adopt the Benchmark Issuance Strategy going forward.
Expected borrowing for July to September 2026
The total market borrowings by state governments and Union Territories for the quarter July to September 2026 are expected to be ₹3,18,816 crore.
The RBI clarified that the actual borrowing amount and the names of the participating states and Union Territories will be announced through press releases two or three days before the relevant auction date.
These actual borrowings will depend on the requirements of the state governments and Union Territories, approval from the Government of India under Article 293(3) of the Constitution of India, and prevailing market conditions.
RBI may revise auction dates and amounts
The central bank said it will try to conduct the auctions in a non-disruptive manner, taking market conditions and other relevant factors into account. It also said it would aim to distribute the borrowings evenly through the quarter.
The RBI has reserved the right to modify the dates and the amount of auction in consultation with the concerned state governments and Union Territories.
The press release was issued by Brij Raj, Chief General Manager, and carried the reference number 2026-2027/551.
Source: Reserve Bank of India Press Releases.