What changed
RBI announced a fresh auction of State Development Loans (SDLs) for 13 states/UTs, aggregating ₹21,350 crore. The auction includes both new issuances and re-issues of existing securities with tenors ranging from 5 to 26 years. Non-competitive bidding facility and Retail Direct portal access remain available.
What it means for you
Banks can use these SDLs to meet SLR requirements under Section 24 of the Banking Regulation Act. The auction provides a benchmark for state borrowing costs and liquidity management. Re-issues of existing securities offer price continuity for secondary market trading.
What you must do
- Submit competitive bids on E-Kuber between 10:30-11:30 AM on July 7, 2026.
- Ensure non-competitive bids are placed by 11:00 AM on the same day.
- Verify bid amounts do not exceed the notified amount for each state.
- Prepare for settlement on July 8, 2026, at Mumbai or respective RBI regional offices.
- Contact IDMD Auction Team for auction-related issues or Core Banking Operations for technical glitches.
Who it affects
Banks and primary dealers, Institutional investors, Individual investors using Retail Direct, State governments (Bihar, Chhattisgarh, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Kerala, Madhya Pradesh, Manipur, Sikkim, Telangana, Uttar Pradesh, Uttarakhand, West Bengal)
What is the minimum bid amount for these securities?
The minimum nominal amount is ₹10,000, and bids must be in multiples of ₹10,000 thereafter.
Can I submit multiple competitive bids?
Yes, you can submit multiple competitive bids at different yields or prices, but the total bid amount per bidder must not exceed the notified amount for each state.
How are re-issued securities treated for interest payments?
Re-issued securities carry the same interest rate as the original issue, paid half-yearly until maturity.