RBI to auction state government securities worth ₹18,600 crore

The Reserve Bank of India (RBI) has announced an auction of state government securities (SGS) worth ₹18,600 crore on May 5, 2026. Five states—Andhra Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Telangana—will participate in this auction through the RBI's E-Kuber system.

The auction includes re-issued stocks and new issuances with varying tenors ranging from 5 to 57 years. Andhra Pradesh plans to raise ₹4,400 crore, Maharashtra ₹3,600 crore, Rajasthan ₹3,600 crore, Tamil Nadu ₹3,000 crore, and Telangana ₹4,000 crore. Investors can bid competitively or non-competitively, with the latter facilitated through the RBI Retail Direct portal.

Competitive bids must be submitted between 10:30 AM and 11:30 AM, while non-competitive bids are allowed until 11:00 AM. In case of technical issues, RBI has provided contact details for support teams. Physical bids will only be accepted in the event of system failure.

The auction results will be announced on May 5, 2026, and successful bidders must complete payments by May 6, 2026. Interest on these securities will be paid semi-annually, and the stocks will qualify for Statutory Liquidity Ratio (SLR) purposes under the Banking Regulation Act, 1949.

These securities are governed by the Government Securities Act, 2006, and are eligible for ready forward facility, making them attractive for institutional and retail investors alike.

Source: Reserve Bank of India press release, Thu, 30 Apr 2026 17:50:00. http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62664