The Reserve Bank of India has announced an auction of State Government Stock for an aggregate face value of ₹21,700 crore. The sale covers securities offered by 12 State and Union Territory governments and will be conducted through the RBI’s Core Banking Solution, E-Kuber, on Tuesday, July 21, 2026.
The auction includes both fresh issues and re-issues of existing State Government Securities. Fresh securities will be auctioned on a yield basis, while re-issued securities will be auctioned on a price basis. The RBI will decide the maximum yield or minimum price at which bids are accepted.
State-wise amount to be raised
The largest amount in this auction is from Madhya Pradesh at ₹4,400 crore, followed by West Bengal at ₹3,800 crore and Uttar Pradesh at ₹2,600 crore. Kerala has offered ₹2,200 crore, while Bihar and Tamil Nadu will each raise ₹2,000 crore.
- Assam: ₹1,000 crore through 10-year stock on yield basis.
- Bihar: ₹1,000 crore each through 15-year and 18-year stock on yield basis.
- Chhattisgarh: ₹1,000 crore through re-issues of 7.83% SGS 2040 and 7.82% SGS 2048.
- Delhi: ₹300 crore through 7-year stock and ₹300 crore through re-issue of 7.75% SGS 2041.
- Jammu and Kashmir: ₹700 crore through re-issues of 7.60% SGS 2038 and 7.81% SGS 2051.
- Kerala: ₹2,200 crore through re-issues of 7.86% SGS 2042 and 7.83% SGS 2049.
- Madhya Pradesh: ₹1,000 crore through 8-year stock, ₹1,400 crore through 12-year stock and ₹2,000 crore through re-issue of 7.83% SGS 2048.
- Odisha: ₹1,000 crore through 18-year stock on yield basis.
- Tamil Nadu: ₹2,000 crore through re-issues of 7.39% SGS 2034 and 7.59% SGS 2041.
- Uttar Pradesh: ₹2,600 crore through re-issues of 7.74% SGS 2038 and 7.82% SGS 2046.
- Uttarakhand: ₹400 crore through 22-year stock on yield basis.
- West Bengal: ₹1,600 crore through 9-year stock and ₹2,200 crore through 21-year stock on yield basis.
Bidding schedule and investor participation
Competitive and non-competitive bids must be submitted electronically on E-Kuber on July 21. Competitive bids will be accepted between 10:30 am and 11:30 am. Non-competitive bids will be accepted between 10:30 am and 11:00 am.
Under the non-competitive bidding facility, up to 10 per cent of the notified amount of each stock will be allotted to eligible individuals and institutions. A single bid per stock under this route is subject to a maximum limit of one per cent of the notified amount. Individual investors may also place bids under the non-competitive scheme through the Retail Direct portal.
The RBI said physical bids will be accepted only if there is a system failure. In such a case, bids must be submitted to the Public Debt Office in the prescribed form before the auction window closes.
Issue terms and settlement
Bidders must quote the yield per annum or price, as applicable, up to two decimal points. An investor may submit more than one competitive bid at the same or different yield or price. However, the total amount of bids submitted by a bidder must not exceed the notified amount for the relevant State.
The minimum nominal investment amount is ₹10,000, with further investments allowed in multiples of ₹10,000. The results of the auction will be announced on July 21, 2026. Successful bidders will make payment during banking hours on Wednesday, July 22, 2026, at Mumbai and at the respective RBI Regional Offices.
For newly issued State Government Stock, the interest rate will be the rate determined at the auction. Interest will be paid half-yearly on January 22 and July 22 each year until maturity. For re-issued stock, interest will be paid at the rate fixed on the original issue date of that security.
The securities will be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. Investment in these State Government Stocks will count as eligible investment in Government Securities for banks’ Statutory Liquidity Ratio requirement 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.