✎ State governments raise funds via RBI-auctioned SDLs to finance development, with ₹35,900 Crore borrowed on Sep 10, 2026.
Relevance for Banking, SSC & RBI Grade B exams: Economy
The Reserve Bank of India (RBI) has announced the auction of State Government Securities (SGS) by 16 state governments and Union Territories, with an aggregate face value of ₹35,900 crore. The auction, scheduled for September 15, 2026, will be conducted on the RBI’s Core Banking Solution (E-Kuber) platform, offering both competitive and non-competitive bidding options. Competitive bids must be submitted between 10:30 AM and 11:30 AM, while non-competitive bids can be placed until 11:00 AM. The auction includes new issuances as well as re-issues of existing securities, with tenors ranging from 11 to 26 years. Successful bidders will receive payments on September 16, 2026, and the securities will bear interest payable half-yearly. The RBI has also highlighted the eligibility of these securities for Statutory Liquidity Ratio (SLR) compliance under the Banking Regulation Act, 1949, making them attractive for banks and financial institutions.
For aspirants preparing for Banking, SSC, and RBI Grade B exams, this auction is significant as it reflects the RBI’s role in managing government debt and liquidity. Questions on State Government Securities, auction mechanisms, and their regulatory treatment under SLR norms are common in these examinations. Understanding the distinction between competitive and non-competitive bidding, as well as the RBI’s auction processes, can help candidates tackle questions related to monetary policy, financial markets, and government securities. Additionally, the eligibility of SGS for SLR compliance underscores their importance in banking operations, making this topic relevant for both economic awareness and financial system studies in competitive exams.
Source: RBI
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