The Reserve Bank of India has announced an auction of State Government Stocks for an aggregate face value of ₹20,100 crore. The sale will be conducted on August 25, 2026, through RBI’s Core Banking Solution platform, E-Kuber.
The details were released by the central bank in a press release dated August 21, 2026. Seven state governments are participating in the auction: Andhra Pradesh, Gujarat, Haryana, Maharashtra, Punjab, Rajasthan and Tamil Nadu.
State-wise auction amounts
The securities include both fresh tenor-based offerings and re-issues of earlier State Government Stocks. Some auctions will be conducted on a yield basis, while several re-issued stocks will be auctioned on a price basis.
- Andhra Pradesh: ₹1,000 crore through re-issue of 7.56% Andhra Pradesh SGS 2039, and ₹1,600 crore through re-issue of 7.68% Andhra Pradesh SGS 2051. Both are price auctions.
- Gujarat: ₹1,000 crore each for 10-year and 15-year stocks, both through yield auctions.
- Haryana: ₹1,000 crore for a 9-year stock and ₹2,000 crore for a 22-year stock, both through yield auctions.
- Maharashtra: ₹1,000 crore for a 5-year stock, ₹2,400 crore for a 13-year stock and ₹1,600 crore for a 23-year stock. All three are yield auctions.
- Punjab: ₹500 crore through re-issue of 7.02% Punjab SGS 2030, and ₹1,500 crore through re-issue of 7.62% Punjab SGS 2039. Both are price auctions.
- Rajasthan: ₹1,500 crore through re-issue of 7.68% Rajasthan SGS 2044, and ₹2,000 crore through re-issue of 7.65% Rajasthan SGS 2053. Both are price auctions.
- Tamil Nadu: ₹1,000 crore through re-issue of 7.49% Tamil Nadu SGS 2036, ₹500 crore through re-issue of 7.62% Tamil Nadu SGS 2041, and ₹500 crore through re-issue of 7.70% Tamil Nadu SGS 2051. All three are price auctions.
Bidding window and investor route
Both competitive and non-competitive bids have to be submitted electronically on E-Kuber on August 25. Competitive bids will be accepted from 10:30 a.m. to 11:30 a.m. Non-competitive bids will be accepted from 10:30 a.m. to 11:00 a.m.
Individual investors can use the RBI Retail Direct portal to place bids under the non-competitive bidding scheme. Under this facility, up to 10% of the notified amount for each stock is available for eligible individuals and institutions. A single bid per stock is subject to a maximum limit of 1% of the notified amount of that stock.
The RBI has said physical bids will be accepted only if there is a system failure. Such bids must be submitted to the Public Debt Office in the prescribed form before the auction timing ends.
Bid rules and allotment
Bidders must quote the expected yield per annum or price, as applicable, up to two decimal points. A bidder may submit more than one competitive bid at the same or different yields or prices through E-Kuber. However, the total bids submitted by a bidder must not exceed the notified amount for the relevant state.
The RBI will decide the maximum yield or minimum price at which bids are accepted. The stocks will be issued for a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 thereafter.
Results, payment and interest
The results of the auction will be announced on August 25, 2026. Successful bidders will have to make payment during banking hours on August 27, 2026, at Mumbai and at the respective Regional Offices of the RBI.
New State Government Stocks will carry interest rates determined at the auction. For new stocks, interest will be paid half-yearly on February 27 and August 27 each year until maturity. For re-issued stocks, interest will be paid at the rate fixed on the date of the original issue and will continue on a half-yearly basis until maturity.
The stocks will be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. Investments in these State Government Stocks will count as eligible government securities for banks’ Statutory Liquidity Ratio requirements under Section 24 of the Banking Regulation Act, 1949. The stocks will also qualify for the ready forward facility.
Source: Reserve Bank of India Press Releases.