RBI Auctions ₹14,800 Crore of State Government Securities; Bihar, Gujarat, and Kerala Lead Market Offering
The Reserve Bank of India (RBI) has announced a massive auction for various State Government Securities (SGS), offering a total Face Value amounting to ₹14,800 Crore. This significant sale includes both new issues and re-issues across multiple states, providing investors ample opportunity to access high-quality government debt instruments.The auction is scheduled to take place on June 9, 2026, utilizing the Reserve Bank of India Core Banking Solution (E-Kuber) system. Individual investors are also encouraged to participate through the Retail Direct portal (https://rbiretaildirect.org.in), enabling access to these state-backed securities.
Scope and Composition of State Government Securities Auction
The offering encompasses a wide range of states, with contributions noted from Bihar, Chhattisgarh, Gujarat, Jammu and Kashmir, Kerala, Madhya Pradesh, Manipur, Mizoram, Tamil Nadu, and Uttar Pradesh. The total aggregate amount targeted for this auction is ₹14,800 Crore (Face Value).Among the state offerings are several re-issues of existing SGS stocks, including those from Bihar, Chhattisgarh, Kerala, Madhya Pradesh, and Tamil Nadu. These re-issue opportunities include specific percentage rates and tenors that investors can target.
For newer issues or yield-based auctions in states like Gujarat (11-year and 14-year papers), Jammu and Kashmir (25 years), Manipur (16 years), and Mizoram (15 years), the RBI is offering opportunities to meet various investment horizons.
Auction Mechanics and Investor Participation Details
The RBI has meticulously laid out the rules for participation, ensuring both competitive and non-competitive bidding processes are clearly defined. The auction will be conducted on Tuesday, June 9, 2026, through E-Kuber.Competitive bids must be submitted between 10:30 A.M. and 11:30 A.M., while the window for non-competitive bids is set from 10:30 A.M. to 11:00 A.M. The RBI will determine the maximum yield or minimum price at which all accepted bids will be finalized.
Investors are informed that they can submit multiple competitive bids using different rates of yield or prices, provided the aggregate amount submitted does not exceed the notified limit for each respective State stock. Stock units will be issued for a minimum nominal amount of ₹10,000.00 and in multiples thereof.
Payment Schedule and Regulatory Qualifications
The results of the auction are slated for announcement on June 9, 2026 (Tuesday). Successful bidders are required to complete payments during banking hours on June 10, 2026 (Wednesday) at RBI's regional offices or in Mumbai.From a regulatory perspective, the investment in these State Government Stocks holds significant value. These stocks will be reckoned as an eligible investment in Government Securities for banks concerning Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. They will also qualify for the ready forward facility.
Interest Rate Structure and Governing Regulations
The RBI will set the interest rates for all new State Government Stocks during the auction process. For re-issued Government Stock, the interest payment rate is fixed based on the rate determined at the date of the stock's original issue.Interest payments are scheduled to occur semi-annually on December 10 and June 10 until maturity. All stocks issued under this offering will be governed by the provisions of the Government Securities Act, 2006, and the associated Government Securities Regulations, 2007.
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