Reserve Bank of India schedules auction for ₹11,500 crore in State Government Securities on April 21
Why it matters
The issuance of State Government Securities (SGS), also known as state development loans, is a primary mechanism for Indian states to finance their fiscal deficits and capital expenditure. This particular auction, scheduled for April 21, 2026, involves a combined face value of ₹11,500 crore. Maharashtra is the largest borrower in this tranche, seeking ₹4,000 crore across three different tenors. The Reserve Bank of India acts as the debt manager for these states under the Government Securities Act, 2006, ensuring a transparent market-based price discovery process.
For banking institutions, these securities are vital because they are reckoned as eligible investments for the Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The auction will follow the multiple-price method on the E-Kuber platform. Non-competitive bidding is encouraged, with up to 10% of the notified amount reserved for eligible individuals and institutions. This ensures broader participation in government debt markets beyond primary dealers and commercial banks, supporting the RBI's goal of deepening the retail footprint in government securities.
| State | Amount (₹ Crore) | Tenor (Years) |
|---|---|---|
| Maharashtra | 4,000 | 08, 18, 28 |
| Punjab | 1,300 | 12 |
| Rajasthan | 3,200 | 10, 23 (includes re-issue) |
| Telangana | 3,000 | 07, 11, 21 |
Glossary
SLR: Statutory Liquidity Ratio; the minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold, or other securities.
E-Kuber: The core banking solution platform of the Reserve Bank of India for government securities auctions.