The Reserve Bank of India has announced an auction of State Government Stocks for an aggregate face value of ₹21,350 crore. The auction will be conducted on the RBI Core Banking Solution, E-Kuber, on Tuesday, July 7, 2026.
The sale covers securities offered by 13 State/UT governments. The instruments include new stocks auctioned on yield basis and re-issues of existing State Government Securities auctioned on price basis.
States and amounts in the auction
West Bengal has the largest notified amount in this auction at ₹4,700 crore, spread across tenors of 5, 18 and 26 years. Madhya Pradesh will raise ₹3,600 crore, including a re-issue of 7.90% Madhya Pradesh SGS 2056. Telangana and Uttar Pradesh have notified ₹3,000 crore each.
Bihar has offered ₹2,000 crore, including ₹800 crore for a 9-year security and ₹1,200 crore through re-issue of 7.92% Bihar SGS 2051. Kerala will raise ₹1,800 crore across 7-year and 13-year stocks.
Jammu and Kashmir has notified ₹1,000 crore, split between a 12-year stock and a re-issue of 7.91% Jammu and Kashmir SGS 2046. Himachal Pradesh will raise ₹700 crore through a 13-year stock. Chhattisgarh has notified ₹500 crore across 9-year and 16-year securities.
Other notified amounts are ₹300 crore each for Jharkhand and Uttarakhand, ₹250 crore for Manipur, and ₹200 crore for Sikkim. Uttarakhand’s offer is through re-issue of 7.87% Uttarakhand SGS 2044.
Bidding window and investor participation
Both competitive and non-competitive bids must be submitted electronically on E-Kuber on July 7. 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% of the notified amount of each stock will be allotted to eligible individuals and institutions. For a single bid in each stock, the maximum limit is 1% of the notified amount. Individual investors can also place non-competitive bids through the Retail Direct portal.
RBI said physical bids would be accepted only in the event of system failure. Such bids must be submitted to the Public Debt Office in the prescribed form before the auction timing ends.
Pricing, allotment and payment
For competitive bids, investors can submit more than one bid at the same or different yields or prices. However, the aggregate amount submitted by a bidder cannot exceed the notified amount for the relevant State stock.
The expected yield per annum or price, as applicable, must be expressed up to two decimal points. The RBI will determine the maximum yield or minimum price at which bids will be accepted.
The stocks will be issued for a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 thereafter. The auction results will be announced on July 7. Successful bidders must make payment during banking hours on Wednesday, July 8, 2026, at Mumbai and at the respective RBI Regional Offices.
Interest and regulatory treatment
New State Government Stocks will carry interest rates determined by the RBI at the auction. For new stocks, interest will be paid half-yearly on January 8 and July 8 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 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.
Investment in State Government Stocks will be treated as eligible investment in Government Securities by banks for Statutory Liquidity Ratio purposes 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.
