RBI Announces ₹20,100 Crore State Government Securities Auction for August 25, 2026

The Reserve Bank of India has announced a fresh auction of State Government Securities (SGS) aggregating ₹20,100 crore, to be conducted on August 25, 2026. Seven state governments are participating in the borrowing exercise, with a mix of new securities and re-issues across tenors ranging from five years to more than two decades.

For banks, treasury desks, debt-market participants and finance professionals, the auction matters because State Government Securities form an important part of the domestic government bond market and are eligible government securities for statutory liquidity purposes. The RBI notice also sets out the exact bidding windows, settlement date and retail participation route.

Which states are borrowing

The seven participating states are Andhra Pradesh, Gujarat, Haryana, Maharashtra, Punjab, Rajasthan and Tamil Nadu. Their combined notified borrowing is ₹20,100 crore.

Andhra Pradesh plans to raise ₹2,600 crore through re-issues of securities maturing in 2039 and 2051. Gujarat has notified two new tranches of ₹1,000 crore each with 10-year and 15-year tenors. Haryana plans ₹1,000 crore for nine years and ₹2,000 crore for 22 years.

Maharashtra has the largest aggregate amount among the participating states at ₹5,000 crore, split into ₹1,000 crore for five years, ₹2,400 crore for 13 years and ₹1,600 crore for 23 years. Punjab plans ₹2,000 crore through re-issues of its 2030 and 2039 securities. Rajasthan has notified ₹3,500 crore through re-issues of securities maturing in 2044 and 2053. Tamil Nadu plans ₹2,000 crore through re-issues of securities maturing in 2036, 2041 and 2051.

How and when bidding will take place

The auction will be conducted through the RBI's Core Banking Solution, E-Kuber, on August 25. Competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while non-competitive bids are to be submitted between 10:30 a.m. and 11:00 a.m..

Under the non-competitive bidding facility, up to 10% of the notified amount of each stock can be allotted to eligible individuals and institutions, subject to the scheme's limits. Individual investors can also place bids through the RBI Retail Direct portal.

The RBI has said the minimum nominal investment is ₹10,000, with further investments in multiples of ₹10,000. An investor may submit more than one competitive bid at different yields or prices, but the aggregate bids cannot exceed the notified amount for the relevant state security.

When results and settlement are due

Auction results are scheduled to be announced on August 25 itself. Successful bidders are required to make payment during banking hours on August 27, 2026.

For newly issued securities, the interest rate will be determined through the auction and interest will be paid half-yearly on February 27 and August 27 until maturity. Re-issued securities will continue to carry the coupon determined on their original issue date, with half-yearly interest payments according to the applicable terms.

Why finance and banking teams should track the auction

The RBI has confirmed that investment in these State Government Stocks will count as eligible investment in Government Securities for banks' Statutory Liquidity Ratio under Section 24 of the Banking Regulation Act, 1949. The securities will also qualify for the ready-forward facility.

That makes the auction relevant not only for primary-market investors but also for bank treasury and liquidity-management teams that monitor government-security holdings, duration and statutory requirements. The spread of tenors from five to 23 years also gives the auction significance for yield-curve and state-borrowing analysis.

Practical points before August 25

- Confirm the specific state, tenor and whether the security is a new issue or re-issue before bidding.

- Competitive participants should be ready within the 10:30 a.m.-11:30 a.m. E-Kuber window.

- Non-competitive participants have the shorter 10:30 a.m.-11:00 a.m. window.

- Retail participants using RBI Retail Direct should review the non-competitive bidding rules and ensure funding and account readiness before the auction.

- Successful bidders should plan for settlement on August 27.

Useful official links

RBI Press Release: Auction of State Government Securities

Key takeaway

RBI's August 25 SGS auction will raise ₹20,100 crore for seven states across a wide range of maturities. The immediate dates to track are August 25 for bidding and results, and August 27 for settlement.