13 states to borrow ₹31,200 crore through bonds on October 13
Thirteen state governments, including Tamil Nadu, West Bengal and Uttar Pradesh, plan to raise ₹31,200 crore in an RBI auction on October 13.
Official title: Auction of State Government Securities · Press Release 2026-2027/1302
What happened
Thirteen states have offered to sell state government bonds worth ₹31,200 crore (face value) at an RBI auction on Tuesday, October 13, 2026. The states are Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Karnataka, Keralam, Mizoram, Odisha, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal.
Tamil Nadu is the biggest borrower at ₹7,000 crore across 20, 25 and 30-year bonds. West Bengal seeks ₹5,400 crore and Uttar Pradesh ₹3,500 crore. Some are new bonds, bid on yield. Others are re-issues of existing bonds, bid on price.
Up to 10% of each issue is set aside for small investors under the non-competitive scheme, and individuals can bid through RBI Retail Direct. Bids are placed on the e-Kuber system on the day of the auction.
What it means for you
State bonds are loans to a state government. Individuals can buy them through RBI Retail Direct. For most people there is no direct effect.
What it means for businesses
Banks, insurers and pension funds buy most state bonds. Heavy state borrowing can keep long-term yields elevated.
Links in this release, explained
- Scheme for Non-competitive Bidding Facility (state government securities)
The RBI circular that sets out how small investors can bid in state government bond auctions without quoting a price, and the share of each issue set aside for them (up to 10% of the notified amount, with a 1% cap on a single bid).
www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11725&Mode=0 - RBI Retail Direct portal
RBI's free online platform where individuals can open an account and buy government bonds, treasury bills and state bonds directly, with no broker. Start here if you want to invest in these auctions yourself.
rbiretaildirect.org.in - RBI forms page (bid forms)
A page on the RBI website listing downloadable forms. The bid form here is only used on paper if the electronic system fails, so most readers can ignore it.
www.rbi.org.in/Scripts/BS_ViewForms.aspx
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.