RBI offers state government securities auction worth ₹13,600 crore

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RBI State Securities Auction

Highlights

RBI will invite yield and price-based bids from various states in the ₹13,600 crore state government securities auction on the E-Kuber system on June 30, 2026.
Telangana offers a total of ₹7,000 crore in four tranches, Andhra Pradesh ₹2,600 crore, Assam ₹1,000 crore, and Punjab and Rajasthan ₹1,500 crore each.
Government securities will be SLR eligible, retail investors can participate via the RBI Retail Direct portal, the minimum investment amount is ₹10,000, and interest will be paid semi-annually.

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

Auction Structure and Timeline

According to the Reserve Bank of India press release, this auction will be conducted on the Reserve Bank of India Core Banking Solution, E-Kuber system, on Tuesday, June 30, 2026. The total offering of ₹13,600 crore includes both new issuances and re-issuances, with yield and price-based bids invited for different states.

Andhra Pradesh is offering a new 13-year issuance of ₹1,000 crore along with a re-issuance of ₹1,600 crore of 8.07% Andhra Pradesh SGS 2051. Assam is coming to the market with a re-issuance of ₹1,000 crore of 7.62% Assam SGS 2046, while Punjab is bringing new issuances of ₹1,000 crore for 4 years and ₹500 crore for 13 years.

Rajasthan is offering a new 27-year issuance of ₹750 crore along with a re-issuance of ₹750 crore of 7.97% Rajasthan SGS 2043. Telangana plans to raise ₹1,000 crore, ₹2,000 crore, ₹2,000 crore, and ₹2,000 crore in four tranches of 13, 18, 23, and 29 years, respectively.

Competitive bids must be submitted electronically between 10:30 AM and 11:30 AM, and non-competitive bids between 10:30 AM and 11:00 AM. Physical bids will only be accepted in case of system failure.

Investor Participation and Impact on the Banking Sector

Up to 10% of the notified sale amount of each security will be allocated to eligible individuals and institutions under the non-competitive bidding facility scheme, though the limit for a single bid will be up to 1% of the notified amount of the respective security. Retail investors can also participate in the non-competitive category through the RBI Retail Direct portal.

The minimum investment amount is set at ₹10,000, and investments can be made in multiples of ₹10,000 thereafter. RBI will determine the maximum yield or minimum price for accepted bids, while interest rates for new issuances will be set in the auction and paid semi-annually on January 1 and July 1 each year.

Interest on re-issued securities will be paid semi-annually at the rate fixed at the time of the original issue until maturity. These securities will be governed by the Government Securities Act, 2006 and Government Securities Regulations, 2007, and will remain eligible investments for the statutory liquidity ratio (SLR) for the banking sector and will also be eligible for ready forward facility.

Our earlier report discussed the impact of high capital costs behind high valuations in the Indian stock market and its effect on expected returns for investors. It also explained how the risk-free rate and risk premium together raise the minimum expected return for equities, putting pressure on domestic investors while foreign capital can take advantage of high valuations.

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