The Reserve Bank of India has announced an auction of State Government Stocks for an aggregate face value of ₹13,600 crore. The auction is scheduled to be conducted on June 30, 2026, through RBI’s Core Banking Solution, E-Kuber.
The stocks are being offered by five state governments: Andhra Pradesh, Assam, Punjab, Rajasthan and Telangana. The sale includes both new securities through yield-based auctions and re-issues of existing State Government Securities through price-based auctions.
State-wise amount offered
Andhra Pradesh has offered two securities for a total of ₹2,600 crore. This includes ₹1,000 crore through a 13-year yield-based auction and ₹1,600 crore through re-issue of 8.07% Andhra Pradesh SGS 2051, originally issued on April 08, 2026, through a price-based auction.
Assam will raise ₹1,000 crore through re-issue of 7.62% Assam SGS 2046, originally issued on January 21, 2026. This will be a price-based auction.
Punjab has offered ₹1,500 crore in total. It will raise ₹1,000 crore through a 4-year yield-based auction and ₹500 crore through a 13-year yield-based auction.
Rajasthan has offered ₹1,500 crore. This includes ₹750 crore through re-issue of 7.97% Rajasthan SGS 2043, originally issued on April 08, 2026, through a price-based auction. Another ₹750 crore will be raised through a 27-year yield-based auction.
Telangana has the largest share in this auction, with securities worth ₹7,000 crore. The state will raise ₹1,000 crore through a 13-year stock, ₹2,000 crore through an 18-year stock, ₹2,000 crore through a 23-year stock and ₹2,000 crore through a 29-year stock. All four will be yield-based auctions.
Bidding schedule and investor participation
Both competitive and non-competitive bids must be submitted electronically on the E-Kuber system on June 30, 2026. Competitive bids can be submitted between 10:30 AM and 11:30 AM. Non-competitive bids can be submitted between 10:30 AM and 11:00 AM.
Under the Scheme for Non-competitive Bidding Facility, government stock up to 10% of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions. A single bid per stock will be subject to a maximum limit of 1% of the notified amount of that stock.
Individual investors can also place bids under the non-competitive scheme through the Retail Direct portal. RBI has said that physical bids will be accepted only in the event of system failure, and such bids must be submitted to the Public Debt Office in the prescribed form before the auction timing ends.
Minimum investment and auction result
The securities will be issued for a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 thereafter. Bidders must quote the expected 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 rates of yield or prices on E-Kuber. However, the total amount of bids submitted by a bidder must not exceed the notified amount for each state.
RBI will decide the maximum yield or minimum price at which bids will be accepted. The auction results will be announced on June 30, 2026. Successful bidders will make payment during banking hours on July 01, 2026, at Mumbai and at the respective Regional Offices of RBI.
Interest payment and regulatory status
For new State Government Stocks, the interest rate will be determined by RBI at the auction. Interest on new stock will be paid half-yearly on January 01 and July 01 every year until maturity.
For re-issued Government Stock, interest will be paid at the rate fixed on the original issue date of that stock. These payments will also be made on a half-yearly basis until maturity.
The stocks 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.