✎ State governments auction SGS to raise funds via RBI’s E-Kuber system, offering competitive/non-competitive bids.
Relevance for Banking, SSC & RBI Grade B exams: Economy
The Reserve Bank of India (RBI) has announced an auction of State Government Securities (SGS) worth ₹16,750 crore on September 22, 2026, through its E-Kuber system. The auction includes fresh and re-issued securities from states like Andhra Pradesh, Goa, Gujarat, Jammu and Kashmir, Maharashtra, Punjab, and Rajasthan, with tenors ranging from 5 to 33 years. Competitive bids will be accepted between 10:30 AM and 11:30 AM, while non-competitive bids can be placed until 11:00 AM on the same day. The RBI will accept bids via its E-Kuber platform or, in rare cases, physical submissions. Successful bidders must make payments by September 23, 2026, with interest payments scheduled for March and September each year. These securities are eligible for Statutory Liquidity Ratio (SLR) compliance under the Banking Regulation Act, 1949, making them crucial for banks’ liquidity management.
For Banking, SSC, and RBI Grade B aspirants, this auction highlights key concepts like government securities, auction mechanisms, and liquidity norms. Questions may test understanding of SLR eligibility, bid types (competitive vs. non-competitive), and RBI’s role in debt management. The auction also reflects fiscal federalism, as states raise funds independently while adhering to RBI’s regulatory framework. Aspirants should note the RBI’s communication channels for technical or auction-related issues, as such details often appear in exam case studies or descriptive questions.
Source: RBI
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