States raise ₹23,600 crore at about 7.6% to 8.1% (Oct 6 auction)
Thirteen states and UTs offered ₹25,100 crore on October 6 and were allotted ₹23,600 crore. Delhi and Punjab declined ₹1,500 crore.
Official title: Result of Yield/Price Based Auction of State Government Securities · Press Release 2026-2027/1259
What happened
In the October 6, 2026 state bond auction, RBI allotted ₹23,600 crore of the ₹25,100 crore that 13 states and UTs offered. Delhi took nothing in both of its bonds (₹1,000 crore) and Punjab took nothing in its 7.54% 2031 bond (₹500 crore). The release does not say why.
Cut-off yields were mostly 7.9% to 8.1%, rates the states will pay each year. The lowest was 7.63% for Maharashtra's shorter bond due 2031 and the highest was 8.08% for Meghalaya's 13-year bond. Telangana will pay 8.03% for 20 years and 8.02% for 26 years. Karnataka will pay 7.86% for 8 years. A week earlier, most states paid near 7.9%.
What it means for you
No direct effect on you. State borrowing at about 8% shows the cost of money to governments. If you want to lend to the government yourself, individuals can bid in these auctions through the RBI Retail Direct portal.
What it means for businesses
States usually pay more than the Centre to borrow, and their rates are a reference for other borrowers.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.