What changed
RBI announced a fresh auction of State Government Securities (SGS) aggregating ₹13,600 crore across Andhra Pradesh, Assam, Punjab, Rajasthan, and Telangana. The auction includes both new issuances and re-issues of existing stocks with tenors ranging from 4 to 29 years. Non-competitive bidding is available for up to 10% of notified amount, with a 1% cap per bid per stock.
What it means for you
Banks can use these SGS for SLR compliance under Section 24 of the Banking Regulation Act, 1949, and for ready forward transactions. The auction provides an opportunity to invest in state debt with varying tenors, aiding liquidity and portfolio diversification. Competitive bidders must express yield or price to two decimal places, and multiple bids per state are allowed but aggregate cannot exceed notified amount.
What you must do
- Submit competitive bids on E-Kuber between 10:30 AM and 11:30 AM on June 30, 2026.
- Ensure non-competitive bids are placed by 11:00 AM on the same day.
- Prepare payment by July 1, 2026, during banking hours at Mumbai or respective RBI Regional Offices.
- Verify that total bids per state do not exceed the notified amount for that state (not aggregate ₹13,600 crore).
- Contact IDMD Auction Team at 022-22702431/022-22705125 for auction-related issues.
Who it affects
Banks and financial institutions investing in government securities, Eligible individual investors via Retail Direct portal, State governments of Andhra Pradesh, Assam, Punjab, Rajasthan, and Telangana, RBI's Public Debt Office and E-Kuber system participants
What is the minimum bid amount for these State Government Securities?
The minimum nominal amount is ₹10,000, and bids must be in multiples of ₹10,000 thereafter.
Can I submit multiple competitive bids for the same state?
Yes, you can submit multiple competitive bids at different yield or price rates, but the total amount across all bids for a state cannot exceed the notified amount for that state.
Are these securities eligible for SLR?
Yes, investment in these State Government Stocks qualifies as an eligible investment in Government Securities for SLR under Section 24 of the Banking Regulation Act, 1949.