Home India Reserve Bank of India Auction of State Government Securities...
Date: 2026-01-02 Category: Not Applicable State: Union Government Country: India

Auction of State Government Securities

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This press release from the Reserve Bank of India, dated January 02, 2026, announces an auction of State Government Securities for an aggregate amount of ₹30,100 Crore. The auction will be conducted on January 06, 2026 (Tuesday) via the RBI's E-Kuber system. Results will be announced on the same day, with payments due on January 07, 2026. **Key Points / Main Content** * **Auction Details:** * Auction Date: January 06, 2026 (Tuesday). * Conducted via: Reserve Bank of India Core Banking Solution (E-Kuber) system. * Aggregate Amount: ₹30,100 Crore (Face Value). * Results Announced: January 06, 2026 (Tuesday). * Payment Date: January 07, 2026 (Wednesday). * **Bidding Process:** * Bids must be submitted in electronic format via E-Kuber. * Competitive Bids: Submitted between 10:30 A.M. and 11:30 A.M. * Non-competitive Bids: Submitted between 10:30 A.M. and 11:00 A.M. * Physical bids are only accepted in the event of system failure and must be submitted in the prescribed form obtainable from the RBI website before the auction timing ends. * Government Stock up to 10% of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions. * Maximum limit of one percent of its notified amount for a single bid per stock as per the 'Scheme for Non-competitive Bidding Facility'. * Individual investors can also place bids as per the non-competitive scheme through the Retail Direct portal (https://rbiretaildirect.org.in). * **State Government Securities Offered:** * Nine State Governments are offering securities via auction. * States include: Andhra Pradesh, Assam, Chhattisgarh, Jammu and Kashmir, Karnataka, Madhya Pradesh, Rajasthan, Tamil Nadu, and West Bengal. * Tenors and amounts vary by state (see table in the original document). * Some securities are re-issues (Karnataka, Tamil Nadu). * **Other Key Information:** * RBI will determine the maximum yield / minimum price at which bids will be accepted. * Stock will be issued for a minimum nominal amount of ₹10,000.00 and in multiples of ₹10,000.00 thereafter. * Interest on the new State Government Stocks will be paid half yearly on July 07 and January 07 of each year till maturity. * Investment in State Government Stocks qualifies for Statutory Liquidity Ratio (SLR) and ready forward facility. **Impact Analysis** **Eligible Individuals and Institutions** *Impact* They have the opportunity to invest in State Government Securities. *Action Required* They need to submit competitive or non-competitive bids through the Reserve Bank of India Core Banking Solution (E-Kuber) system. **State Governments** *Impact* They can raise funds through the sale of securities. *Action Required* They need to manage the raised capital effectively to meet their financial obligations. **Reserve Bank of India** *Impact* It is responsible for conducting the auction and determining interest rates. *Action Required* It must execute the auction process according to the outlined procedures and manage the overall auction effectively. **Banks** *Impact* They can invest in State Government Stocks for the purpose of Statutory Liquidity Ratio (SLR). *Action Required* Banks should assess their investment strategies and participate in the auction to manage their SLR requirements.

Key Entities Referenced

Reserve Bank of India: Conducts the auction of State Government Securities. State Government Securities: Subject of the auction, sold by State Governments. E-Kuber: Reserve Bank of India Core Banking Solution system used for the auction. Scheme for Non-competitive Bidding Facility: A scheme allowing individuals to participate in the auction. Government Securities Act, 2006: Governs the State Government Stocks.
Official Source Record View Original Source →
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प्रेस प्रकाशनी PRESS RELEASE भारतीय ररज़र्व ब ैंक RESERVE BANK OF INDIA वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502 January 02, 2026 Auction of State Government Securities The following State Governments have offered to sell stock by way of auction, for an aggregate amount of ₹30,100 Crore (Face Value) Amount to Sr. Type of State/ UT be raised Tenor (Year) No . Auction (₹ Crore) 1000 10 Yield 1000 14 Yield 1000 16 Yield 1. Andhra Pradesh 1000 18 Yield 1000 19 Yield 1500 21 Yield 2. Assam 1000 10 Yield 1000 09 Yield 3. Chhattisgarh 1000 20 Yield Jammu and 4. 600 12 Yield Kashmir 2000 05 year and 06 months Yield Re-issue of 7.19% Karnataka SGS 1000 2032, issued on December 24, Price 5. Karnataka 2025 1000 08 Yield 2000 10 year and 06 months Yield 1500 04 Yield 6. Madhya Pradesh 1500 12 Yield 1000 18 Yield 7. Rajasthan 1000 14 Yield 1000 04 Yield 2000 06 Yield Re-issue of 7.42% Tamil Nadu 8. Tamil Nadu 1000 SGS 2035, issued on December Price 31, 2025 1000 11 Yield 1000 30 Yield 1000 15 Yield 9. West Bengal 1000 19 Yield 1000 21 Yield Total 301002 The auction will be conducted on the Reserve Bank of India Core Banking Solution (E- Kuber) system on January 06, 2026 (Tuesday). The Government Stock up to ten per cent of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions, subject to a maximum limit of one per cent of its notified amount for a single bid per stock as per the ‘Scheme for Non-competitive Bidding Facility’. Individual investors can also place bids as per the non-competitive scheme through the Retail Direct portal (https://rbiretaildirect.org.in). Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 06, 2026 (Tuesday). The competitive bids should be submitted between 10:30 A.M. and 11:30 A.M. and non-competitive bids should be submitted between 10:30 A.M. and 11:00 A.M. In case of technical difficulties, Core Banking Operations Team may be contacted (email; Phone no: 022-69870466, 022-69870415). For other auction related difficulties, IDMD Auction Team can be contacted (email; Phone no: 022-22702431, 022-22705125). Only in the event of system failure, physical bids would be accepted. Such physical bids should be submitted to the Public Debt Office (email; Phone no: 022-22603456, 022- 22603457,022-22603190) in the prescribed form obtainable from RBI website (https://rbi.org.in/en/web/rbi/forms) before the auction timing ends. The yield per cent per annum or the price as the case may be, expected by the bidder should be expressed up to two decimal points. An investor can submit more than one competitive bid at same/different rates of yield or prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State. The Reserve Bank of India will determine the maximum yield / minimum price at which bids will be accepted. Stock will be issued for a minimum nominal amount of ₹10,000.00 and in multiples of ₹10,000.00 thereafter. The results of the auction will be announced on January 06, 2026 (Tuesday) and payment by successful bidders will be made during banking hours on January 07, 2026 (Wednesday) at Mumbai and at respective Regional Offices of RBI. The new State Government Stocks will bear interest at the rates determined by RBI at the auctions. For the new stock, interest will be paid half yearly on July 07 and January 07 of each year till maturity. For the re-issued Government Stock, interest will be paid at the rate as determined on the date of original issue of Government Stock and will be paid on half yearly basis till maturity. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and the Government Securities Regulations, 2007. The investment in State Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the ready forward facility. Ajit Prasad Deputy General Manager Press Release: 2025-2026/1840 (Communications)

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