RBI to conduct ₹21,700 crore State Government securities auction on July 21

India’s state borrowing programme continues to run through a predictable, market-based framework, with the Reserve Bank of India (RBI) set to conduct an auction of State Government Securities (SGS) for an aggregate notified amount of **₹21,700 crore (face value)**.

As per the RBI’s press release, the auction will be held on the **RBI Core Banking Solution (E-Kuber) system on July 21, 2026 (Tuesday)**. The offering spans a mix of fresh issuances (yield-based) and **re-issues** (price-based) of existing state government bonds, helping states tap markets efficiently while providing investors diversified tenor choices.

What is on offer: states, amounts, and tenors The notified amount is spread across several State Governments and a Union Territory, with a combination of shorter- and longer-dated instruments.

**Yield-based auctions (fresh issuances)** are scheduled for: - **Assam**: ₹1,000 crore, **10-year** - **Bihar**: ₹1,000 crore, **15-year** and ₹1,000 crore, **18-year** - **Delhi**: ₹300 crore, **7-year** - **Madhya Pradesh**: ₹1,000 crore, **8-year** and ₹1,400 crore, **12-year** - **Odisha**: ₹1,000 crore, **18-year** - **Uttarakhand**: ₹400 crore, **22-year** - **West Bengal**: ₹1,600 crore, **9-year** and ₹2,200 crore, **21-year**

**Price-based auctions (re-issues of existing SGS)** include: - **Chhattisgarh**: ₹500 crore re-issue of **7.83% Chhattisgarh SGS 2040** (issued April 15, 2026) and ₹500 crore re-issue of **7.82% Chhattisgarh SGS 2048** (issued April 29, 2026) - **Delhi**: ₹300 crore re-issue of **7.75% Delhi SGS 2041** (issued June 24, 2026) - **Jammu and Kashmir**: ₹200 crore re-issue of **7.60% J&K SGS 2038** (issued July 08, 2026) and ₹500 crore re-issue of **7.81% J&K SGS 2051** (issued June 10, 2026) - **Kerala**: ₹1,000 crore re-issue of **7.86% Kerala SGS 2042** (issued April 15, 2026) and ₹1,200 crore re-issue of **7.83% Kerala SGS 2049** (issued April 29, 2026) - **Madhya Pradesh**: ₹2,000 crore re-issue of **7.83% MP SGS 2048** (issued April 29, 2026) - **Tamil Nadu**: ₹1,000 crore re-issue of **7.39% TN SGS 2034** (issued July 15, 2026) and ₹1,000 crore re-issue of **7.59% TN SGS 2041** (issued July 15, 2026) - **Uttar Pradesh**: ₹1,000 crore re-issue of **7.74% UP SGS 2038** (issued June 10, 2026) and ₹1,600 crore re-issue of **7.82% UP SGS 2046** (issued June 10, 2026)

This mix across tenors—from **7 years** to **22 years**, and including longer-dated re-issues—supports smoother maturity profiles for states and offers investors multiple duration options.

How the auction works, including a retail-friendly route The RBI will run the auction on **E-Kuber**, its electronic platform for government securities operations. Instruments are being offered through **yield** auctions (where bidders quote yields) and **price** auctions (typically used for re-issues where bidders quote prices).

Importantly, the RBI noted that **up to 10% of the notified amount of the sale of each stock** may be allotted to **eligible individuals and institutions** under the **Non-competitive Bidding Facility**, with a cap of **1% of the notified amount for a single bid per stock**. This route is designed to make participation simpler for eligible bidders, and can broaden access beyond large institutional participants.

For market participants, such regularly scheduled auctions are a constructive signal of transparency and continuity. A steady calendar can help banks, insurers, mutual funds, and eligible individuals plan allocations, manage duration, and diversify holdings across states and maturities.

**Why it matters:** A well-executed SGS auction helps states mobilise funds through an established, rules-based market mechanism, while giving investors a wider set of fixed-income options—supporting India’s deeper, more resilient bond market over time.