Reserve Bank of India to Auction ₹29,900 Crore in State Bonds
India's central bank will manage the sale of State Government Securities on 3 November 2026, enabling states to raise funds for their development programmes.
Auction Details Confirmed
The Reserve Bank of India (RBI) is scheduled to conduct an auction for State Government Securities (SGS) on 3 November 2026, aiming to raise an aggregate of ₹29,900 Crore (face value). This issuance enables various Indian states to secure essential financing for their development and infrastructure programmes.
The central bank will announce the auction results on the same day, with successful bidders expected to complete payments by 4 November 2026.
Bidding Process and Platform
The auction will be facilitated through the RBI's Core Banking Solution (E-Kuber) system. Both competitive and non-competitive bids must be submitted electronically on 3 November 2026.
Competitive bids are open from 10:30 A.M. to 11:30 A.M., while non-competitive bids have a shorter window, from 10:30 A.M. to 11:00 A.M. Each stock will be issued for a minimum nominal amount of ₹10,000.00, with subsequent bids in multiples of this figure.
Investor Access and Non-Competitive Bidding
Eligible individuals and institutions can participate in the non-competitive bidding facility, which allocates up to 10 per cent of each stock's notified amount. A single bid under this scheme is capped at one per cent of the notified amount. Individual investors also have the option to place non-competitive bids via the RBI's Retail Direct portal. The RBI will ultimately determine the maximum acceptable yield or minimum price for the securities.
These State Government Stocks hold specific importance for financial institutions, as the RBI confirms they will count as eligible investments for banks' Statutory Liquidity Ratio (SLR) requirements under Section 24 of the Banking Regulation Act, 1949.
Furthermore, the securities qualify for the ready forward facility, allowing them to be used in the repo market for short-term liquidity management. Interest on new stocks will be paid half-yearly on May 04 and November 04 until maturity.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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