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RBI ReportPublished 28 Aug 2026Read time 1 minEffective 25 Aug 2026

Seven State Governments Raise ₹20,100 Crore via Bond Auctions

Seven states raised ₹20,100 crore by selling government bonds on August 25, 2026.

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For information only. Not financial advice. Verify with official sources before taking any action.

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What happened

Seven Indian state governments — Andhra Pradesh, Gujarat, Haryana, Maharashtra, Punjab, Rajasthan, and Tamil Nadu — raised a combined ₹20,100 crore by selling bonds to investors. These bonds, called State Government Securities or SGS, were auctioned by the RBI on August 25, 2026. All bids were fully accepted, meaning states received the entire amount they sought.

Why it matters

State governments regularly borrow money through these bond auctions to fund public spending like roads, hospitals, and salaries. The interest rates (yields) on these bonds — ranging roughly from 7.09% to 7.75% — serve as a benchmark that can indirectly influence fixed deposit rates, small savings schemes, and other investment products available to ordinary citizens.

What to check

  • →Check if your bank or post office has updated its fixed deposit interest rates recently, as government bond yields can influence them.
  • →Look at whether state government bonds (SGS) are available on your trading or investment platform if you want a low-risk, government-backed investment option.
  • →Find out the current interest rates on small savings schemes like PPF and NSC, which are reviewed periodically with reference to government bond yields.
  • →Consider that these bonds carry sovereign guarantee — meaning the state government backs repayment — if you are exploring safe investment alternatives.
  • →Ask your broker or bank whether retail investors can participate in government securities auctions through the RBI Retail Direct platform.

This is general information, not financial advice. Check your own position with your lender or an adviser.

What this means for you

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