RBI to Conduct Auction of State Government Securities via e-Kuber Platform

The Reserve Bank of India (RBI) has announced a key development regarding state government borrowings. Through the State Government Securities (SGS) auction scheduled for April 7, 2026 , various states will collectively raise ₹18,159 crore . The auction will be conducted via RBI’s core banking solution platform, e-Kuber . These funds are being mobilised as market borrowings to support development works and other financial requirements of the states.

Among the participating states, the Telugu states account for a significant share. The Government of Telangana plans to raise ₹3,900 crore , divided into two tranches ₹2,000 crore through a 17-year security and ₹1,900 crore via a 30-year security .

Meanwhile, the Government of Andhra Pradesh will raise ₹2,200 crore by issuing two securities with maturities of 12 years and 25 years , respectively.

Other major participants include Maharashtra and Rajasthan , each aiming to raise ₹3,600 crore . Maharashtra will mobilise funds through three securities with maturities of 5, 13, and 23 years . Rajasthan, in addition to issuing new securities, will also reissue its earlier “Rajasthan SGS 2031” carrying an interest rate of 7.33% , originally issued on March 25, 2026 .

Among other states, Punjab will raise ₹1,500 crore through a 10-year security , while Himachal Pradesh and Meghalaya plan to raise ₹900 crore and ₹259 crore , respectively, also through 10-year securities .

The tenor of securities has been determined based on each state’s financial position and future requirements, making this borrowing exercise crucial for infrastructure development .

The auction process will be conducted entirely in digital mode . On Tuesday, April 7 , eligible institutional investors can submit competitive and non-competitive bids via the e-Kuber system. Notably, retail investors can also participate through the Retail Direct portal , enhancing public participation in government securities.

As per RBI’s schedule, the auction results will be announced on the evening of April 7 , detailing the cut-off yields and accepted bids for each state. Successful bidders must complete payments for the allotted securities on Wednesday, April 8 , during banking hours, marking the conclusion of the borrowing process.

While SGS auctions are a routine part of state financial management, the large size of ₹18,159 crore has generated significant interest in market circles. The interest rates for each state will depend on their financial health and debt repayment capacity. The funds raised will be used either to repay maturing debt or to finance new projects .

Overall, the April 7 auction is considered a significant event in India’s financial markets , as multiple states simultaneously mobilise substantial funds to meet their budgetary requirements. Conducted under RBI’s supervision, the transparent auction process provides secure investment opportunities for investors while ensuring timely capital for state governments.