Home India Reserve Bank of India Auction of State Government Securities...
Date: 2025-10-16 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 October 16, 2025, announces the auction of State Government Securities for an aggregate amount of ₹17,000 Crore. The auction will be conducted on October 20, 2025, via the RBI's E-Kuber system. Payment by successful bidders is due on October 23, 2025. **Key Points / Main Content** * **Auction Details:** * Auction Date: October 20, 2025 (Monday) * Auction Platform: Reserve Bank of India Core Banking Solution (E-Kuber) system * Aggregate Amount: ₹17,000 Crore (Face Value) * Competitive Bid Submission: 10:30 A.M. - 11:30 A.M. * Non-Competitive Bid Submission: 10:30 A.M. - 11:00 A.M. * Result Announcement: October 20, 2025 (Monday) * Payment Date: October 23, 2025 (Thursday) * **State Government Securities:** * Five states (Chhattisgarh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh) are offering securities via auction. * Securities include re-issues of existing State Government Stocks (SGS) with varying tenors and yields. * Minimum bid amount is ₹10,000.00 and in multiples of ₹10,000.00 thereafter. * **Bidding Process:** * Bids must be submitted electronically via the E-Kuber system. * Physical bids are accepted only in the event of system failure, using a prescribed form from the RBI website. * Yield or price should be expressed up to two decimal points. * Bidders can submit multiple competitive bids, but the aggregate amount must not exceed the notified amount for each state. * Up to 10% of the notified amount of each stock will be allotted to eligible individuals and institutions via the 'Scheme for Non-competitive Bidding Facility', subject to a maximum limit of one per cent of its notified amount for a single bid per stock. Individual investors can also place bids as per the non-competitive scheme through the Retail Direct portal. * **Interest and Regulations:** * Interest for the new stock will be paid half-yearly on April 23 and October 23 of each year until maturity. * Interest for re-issued Government Stock will be paid at the rate determined on the date of original issue of Government Stock and will be paid on a half-yearly basis till maturity. * The stocks are governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. * **Eligibility and Investment:** * Investment in State Government Stocks qualifies as an eligible investment in Government Securities for banks' Statutory Liquidity Ratio (SLR). **Impact Analysis** **State Governments:** * **Impact:** Can raise funds by selling government stocks through auction. * **Action Required:** No action indicated. **Banks:** * **Impact:** Can invest in State Government Stocks for SLR compliance and participate in the ready forward facility. * **Action Required:** Take part in the auction by submitting bids. **Individuals and Institutions:** * **Impact:** Can invest in State Government Stocks through competitive and non-competitive bidding processes. * **Action Required:** Take part in the auction by submitting bids.

Key Entities Referenced

Reserve Bank of India Core Banking Solution (E-Kuber): Electronic system used for auctioning State Government Securities. Scheme for Non-competitive Bidding Facility: Scheme allowing eligible individuals and institutions to participate in the auction with a limited amount. State Government Securities: The subject of the auction; debt instruments issued by state governments. Reserve Bank of India: The central bank conducting the auction and determining interest rates. Banking Regulation Act, 1949: Act that defines statutory liquidity ratio, which these securities can fulfill.
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प्रेस प्रकाशनी PRESS RELEASE भारतीय ररज़र्व बैंक 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 October 16, 2025 Auction of State Government Securities The following State Governments have offered to sell stock by way of auction, for an aggregate amount of ₹17,000 Crore (Face Value). Sr. State Amount to Tenor (Year) Type of No. be raised Auction (₹ Crore) 1. Chhattisgarh 1000 15 Yield Re-issue of 7.14% Price 1000 Chhattisgarh SGS 2032, issued on March 19, 2025 2. Maharashtra 1500 11 Yield 1000 25 Yield Re-issue of 7.24% Maharashtra Price 1000 SGS 2034, issued on September 10, 2025 Re-issue of 7.26% Maharashtra Price 1500 SGS 2041, issued on October 08, 2025 3. Rajasthan 2000 10 Yield 1500 26 Yield Re-issue of 7.57% Rajasthan Price 1500 SGS 2043, issued on August 28, 2025 4. Tamil Nadu 1000 07 Yield 1000 10 Yield Re-issue 7.44% Tamil Nadu Price 1000 SGS 2055, issued on October 01, 2025. 5. Uttar Pradesh 2000 10 Yield Total 17000 The auction will be conducted on the Reserve Bank of India Core Banking Solution (E- Kuber) system on October 20, 2025 (Monday). 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).2 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 October 20, 2025 (Monday). 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 October 20, 2025 (Monday) and payment by successful bidders will be made during banking hours on October 23, 2025 (Thursday) 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 April 23 and October 23 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 Press Release: 2025-2026/1331 Deputy General Manager (Communications)

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