11 states to borrow ₹24,400 crore through bonds on October 19
Eleven states, including Maharashtra, Madhya Pradesh and Rajasthan, plan to raise ₹24,400 crore in an RBI auction on October 19.
Official title: Auction of State Government Securities · Press Release 2026-2027/1336
What happened
Eleven states have offered bonds worth ₹24,400 crore (face value) for sale at an RBI auction on Monday, October 19, 2026. They are Andhra Pradesh, Goa, Gujarat, Jammu and Kashmir, Madhya Pradesh, Maharashtra, Meghalaya, Punjab, Rajasthan, Telangana and Tripura.
Maharashtra is the largest at ₹8,000 crore over four bonds, then Madhya Pradesh at ₹4,500 crore and Rajasthan at ₹3,500 crore. Some are new bonds, bid by yield, and others are re-issues of existing bonds, bid by price.
Up to 10% of each issue is reserved for small investors, and individuals can bid via RBI Retail Direct. Competitive bids are accepted from 10:30 to 11:30 am, and non-competitive ones from 10:30 to 11:00 am.
What it means for you
State bonds can be bought through RBI Retail Direct at the auction's average rate. There is otherwise no direct effect.
What it means for businesses
Banks and insurers will be the main buyers. Large state borrowing keeps pressure on bond yields.
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.