RBI To Auction ₹14,500 Crore State Government Securities on April 28

The Reserve Bank of India has announced an auction of State Government Securities worth ₹14,500 crore. The auction is scheduled to take place on April 28, 2026, through an electronic bidding process.

Several states will raise funds through this issuance across multiple tenors. The move forms part of regular state borrowing programmes coordinated by the central bank.

States Participating And Auction Size

According to the RBI release, the auction will include issuances by Assam, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Uttar Pradesh, and Uttarakhand. Together, these states will mobilise a total of ₹14,500 crore through State Government Securities.

The issuances will consist of both fresh securities and re‑issuances of existing ones. The exact allocation among states will be based on their individual borrowing plans.

Tenors, Issuance Types, And Auction Method

The securities on offer will have maturities ranging from 3 years to 23 years. Fresh issuances will be auctioned on a yield basis, while several re‑issued securities will be auctioned on a price basis.

Participants will be required to quote either yields or prices up to 2 decimal places. The RBI will determine the cut‑off yield or price separately for each security based on received bids.

Bidding Process and Timelines

The auction will be conducted electronically through the RBI’s Core Banking Solution, E‑Kuber. Competitive bids can be submitted between 10:30 am and 11:30 am on April 28, 2026.

Non‑competitive bids will be accepted between 10:30 am and 11:00 am on the same day. Auction results will be announced on April 28, with settlement scheduled for April 29, 2026.

Non‑Competitive Bidding and Investment Features

Up to 10% of the notified amount of each security is reserved for non‑competitive bidding. Individual bidders are capped at 1% of the notified amount per security under this facility.

Retail investors can participate through the RBI Retail Direct platform. Securities will be issued in denominations of ₹10,000 and multiples thereof, making them accessible to a wider investor base.

Read More: RBI Proposes to Introduce Asset-Based Method to Identify Upper Layer NBFCs.

Conclusion

The ₹14,500 crore SGS auction reflects continued state borrowing through market‑linked instruments. The offering spans a wide maturity profile and includes both new and existing securities.

SGS remain eligible for Statutory Liquidity Ratio requirements and repo transactions, supporting their liquidity. Overall, the auction represents a routine but significant component of India’s government securities market activity.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.