RBI To Auction Rs 23,300 Crore Worth Of State Government Securities On October 27

The Reserve Bank of India (RBI), on October 27, 2026, will auction Rs 23,300 crore worth of state government securities, with 13 states participating in the borrowing exercise.

Tamil Nadu has the biggest share of the planned borrowing at Rs 9,000 crore, followed by Uttar Pradesh at Rs 3,500 crore. The auction includes new bonds as well as existing securities being offered again to raise funds.

Tamil Nadu, Uttar Pradesh Account For Largest Borrowings

Tamil Nadu plans to raise Rs 9,000 crore by reissuing four securities maturing between 2041 and 2056. Uttar Pradesh will raise Rs 3,500 crore through three existing bonds, with maturities in 2032, 2042 and 2051.

Gujarat will raise Rs 2,000 crore through two reissued securities, while Bihar plans to borrow Rs 2,000 crore through a fresh nine-year bond and an existing security maturing in 2041. Keralam will raise Rs 1,500 crore through a new 14-year bond. Chhattisgarh plans to raise Rs 1,200 crore through two existing securities. Assam will raise Rs 1,000 crore through a nine-year bond.

Himachal Pradesh will borrow Rs 400 crore, Jharkhand Rs 200 crore, Manipur Rs 300 crore, Nagaland Rs 300 crore, Sikkim Rs 400 crore and Uttarakhand Rs 500 crore. The amounts cover both fresh issues and reissues, as applicable.

Bids Open On October 27

Investors must submit their bids through RBI's E-Kuber system on October 27. The window for competitive bids will run from 10:30 am to 11:30 am, while non-competitive bids must be submitted between 10:30 am and 11 am.

Under the non-competitive bidding facility, eligible individuals and institutions can receive up to 10 per cent of the notified amount for each security. A single bid under this route cannot exceed 1 per cent of the amount notified for that security.

Retail investors can access the RBI Retail Direct portal to place non-competitive bids. Those bidding competitively can submit multiple bids at different yields or prices, but the total amount bid for a state cannot exceed its notified amount.

Interest Payments And Settlement Dates

The central bank will announce the auction results on October 27. Successful bidders must make payments during banking hours on October 28 at Mumbai or the relevant RBI regional offices.

For fresh securities, the interest rate will be determined through the auction, with payments due every six months on April 28 and October 28. Reissued bonds will pay interest at the rate fixed when they were first issued.

The minimum investment is Rs 10,000, with further investments allowed in multiples of Rs 10,000. Banks can count these securities towards their Statutory Liquidity Ratio requirements. The bonds will also be eligible for ready forward transactions.