RBI announces Rs 14,500 crore state government securities auction; these 7 states to participate

RBI Announces Rs 14,500 crore SGS Auction: The Reserve Bank of India (RBI) will hold an auction of State Government Securities (SGS) amounting to Rs 14,500 crore on April 28, 2026.

Multiple States to Participate in Multi-Tenor Issuance, Including Fresh and Re-Issued Securities

As per the central bank’s release, states such as Assam, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Uttar Pradesh and Uttarakhand will take part in the issuance. The securities on offering will span a wide maturity range, from 3 years to 23 years, and will include both new issuances as well as re-issued bonds. While some of these will be auctioned on the basis of yield, others—largely the re-issued securities—will be auctioned on price.

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E-Kuber Platform to Handle Electronic Auction Process

The auction will be conducted electronically through the RBI’s core banking system, E-Kuber.

Defined Bidding Windows; Retail Investors Eligible Under Non-Competitive Segment

Both competitive and non-competitive bids are to be submitted on the same day. Competitive bids can be placed between 10:30 AM and 11:30 AM, while non-competitive bids will be accepted from 10:30 AM to 11:00 AM. Under this non-competitive route, up to 10% of the notified amount for each security is set aside for eligible participants, with a ceiling of 1% per bidder per security. Retail investors can take part through the RBI Retail Direct platform.

Rules on Pricing, Multiple Bids and Allocation Mechanism

Bidders must quote yields or prices up to two decimal places. They may submit multiple bids at different levels, provided the total amount bid for each state does not exceed the notified size. The RBI will decide the cut-off yield or price for each security, which will form the basis for allotment. Securities will be issued in a minimum lot of Rs 10,000 and in multiples thereafter.

Results on Auction Day; Settlement Scheduled for April 29

The outcome of the auction will be declared on the same day. Successful bidders are required to make payments on April 29, 2026, during banking hours at designated RBI offices. Fresh securities will carry interest rates determined through the auction and will have semi-annual interest payments on April 29 and October 29. Re-issued securities will continue with their existing coupon rates and follow the same payment schedule.

Eligible for SLR and Repo, Enhancing Liquidity for Investors

Investments in SGS qualify as approved assets for banks’ Statutory Liquidity Ratio (SLR) requirements and are also eligible for repo transactions, which adds to their liquidity and appeal among institutional investors.

Key auction details

• RBI to auction State Government Securities worth Rs 14,500 crore on April 28, 2026
• States in the fray include Assam, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Uttar Pradesh and Uttarakhand
• Papers on offer will span multiple maturities, from short- to long-term (3–23 years)
• Mix of fresh issuances and re-issues; auction to be split between yield-based and price-based methods
• Uttar Pradesh is likely to account for the largest chunk of the borrowing; Bihar and Kerala are also tapping funds across tenors

For investors

• Non-competitive segment reserved (up to 10% of each issue), allowing retail participation via RBI Retail Direct
• Bidding and allotment on April 28; payments to be made the next day (April 29)
• Securities will carry the usual semi-annual interest payouts

With ANI Inputs