₹16,900 crore state securities auction through RBI on June 23

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RBI State Securities Auction

Highlights

RBI will conduct an auction of securities totaling ₹16,900 crore from states including Bihar, Chhattisgarh, and Delhi on the E-Kuber platform on June 23, 2026.
Delhi and Gujarat are inviting bids totaling ₹800 crore with additional borrowing and greenshoe options for securities of 10-15 years and 9-13 years maturity, respectively.
The securities will remain eligible for banking investments under SLR and ready forward notifications, and interest rates will be determined based on the auction or re-issuance date.

This article was translated from the original. Read the original version by our correspondent here.

Auction Size and Schedule

According to the press release from RBI, Bihar, Chhattisgarh, Delhi, Gujarat, Himachal Pradesh, Kerala, Madhya Pradesh, Tamil Nadu, and Uttar Pradesh are offering securities for sale in this auction. The auction will be held on Tuesday, June 23, 2026, on RBI’s Core Banking Solution, E-Kuber, and the results will be announced the same day.

In this total issuance of ₹16,900 crore, several states have offered securities of varying tenures. Some issuances from Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Tamil Nadu, and Uttar Pradesh are reissues of previously issued securities, while some papers from Delhi, Gujarat, Himachal Pradesh, and Uttar Pradesh are being offered through yield-based auctions.

Delhi has provided an additional borrowing option of ₹200 crore and ₹100 crore with 10-year and 15-year securities, respectively. Gujarat has invited bids with a green shoe option of ₹500 crore-₹500 crore on 9-year and 13-year securities.

Investor Participation and Market Impact

Both competitive and non-competitive bids must be submitted electronically on June 23, 2026. The timing for competitive bids is from 10:30 AM to 11:30 AM, while non-competitive bids will be accepted from 10:30 AM to 11:00 AM.

Up to 10 percent of the notified amount will be allocated to eligible individuals and institutions under the non-competitive bidding facility scheme, although the limit for a single bid is up to 1 percent of the notified amount of the respective security. Retail investors can also place bids through the RBI Retail Direct portal.

Successful bidders must make payment on Wednesday, June 24, 2026, during banking hours at Mumbai and the respective regional offices of RBI. The interest rate on new state government securities will be determined in the auction, while reissued securities will continue to receive semi-annual interest at the rate set on the original issue date.

These securities will be governed by the provisions of the Government Securities Act, 2006 and the Government Securities Regulations, 2007. For banks, these investments will be considered eligible government security investments under the statutory liquidity ratio, SLR, and will also be eligible for the ready forward facility.

Our earlier report discussed the easing of macroeconomic pressures on India and policy flexibility following the possibility of a U.S.-Iran agreement leading to softer oil and fertilizer prices, and also noted that steps taken by RBI to facilitate dollar flows could support the sentiment of non-resident Indians and foreign investors, while monitoring agricultural and policy preparedness amid risks such as monsoon, employment, and demographic changes.

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