RBI to Auction Rs 14,500 Crore State Government Securities on April 28, 2026

The Reserve Bank of India (RBI) has announced an auction of State Government Securities (SGS) totaling Rs 14,500 crore, slated for April 28, 2026. This financial event will see participation from states including Assam, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Uttar Pradesh, and Uttarakhand, with securities issued across varying maturities spanning 3 to 23 years. The issuance will involve both fresh and re-issued securities, which will be auctioned either based on yield or price, depending on the type.

The auction process will utilize the RBI's Core Banking Solution, E-Kuber, allowing for electronic bidding. Competitive bids can be submitted between 10:30 AM and 11:30 AM, while non-competitive bids are accepted between 10:30 AM and 11:00 AM. Under the non-competitive bidding framework, 10% of the notified amount per security is earmarked for eligible participants, with a 1% cap per bidder per security. Participants in the auction may place bids in yields or prices, accurate to two decimal places, with the flexibility to submit multiple bids across various yields or prices, provided the total does not exceed the notified amount per state. The cut-off yield or price for each security, determined by the RBI, will dictate the allocation of these securities.

Auction results are expected to be disclosed on the same day, with successful bidders required to make payments by April 29, 2026. Newly issued securities will have auction-determined interest rates, with semi-annual payments due on April 29 and October 29. Re-issued securities will maintain their original interest rates with similar payment schedules. These SGS instruments qualify as assets for banks' Statutory Liquidity Ratio (SLR) requirements and are eligible for repo transactions, thereby boosting their liquidity and appeal to institutional investors.

(With inputs from agencies.)