Reserve Bank of India to conduct 11,500 crore rupee auction for four state government securities
Why it matters
The Reserve Bank of India (RBI), acting as the debt manager for state governments, has scheduled a multi-state auction of securities for April 21, 2026. This fiscal exercise involves the sale of stocks by four state governments—Maharashtra, Punjab, Rajasthan, and Telangana—to raise an aggregate amount of 11,500 crore rupees. The auction serves as a primary mechanism for states to fund their fiscal deficits and developmental projects through market borrowings. Maharashtra is seeking the highest amount of 4,000 crore rupees across three different tenors (8, 18, and 28 years), while Telangana aims to raise 3,000 crore rupees.
This auction is governed by the Government Securities Act, 2006, and the Government Securities Regulations, 2007. For banking institutions, these investments are categorized as eligible for the Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The use of the E-Kuber system ensures a transparent and efficient bidding process. Individual investors are also permitted to participate through the Retail Direct portal under the non-competitive bidding scheme, which reserves up to 10% of the notified amount for retail participation.
| State | Amount (₹ Crore) | Tenor (Years) |
|---|---|---|
| Maharashtra | 4,000 | 08, 18, 28 |
| Punjab | 1,300 | 12 |
| Rajasthan | 3,200 | 10, 23, Re-issue |
| Telangana | 3,000 | 07, 11, 21 |
Glossary
E-Kuber: The Core Banking Solution (CBS) platform of the Reserve Bank of India that facilitates various banking and market operations, including government security auctions.
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 approved by the RBI.