A Golden Opportunity: Invest In State Government Securities For Lucrative Returns

Category RBI News Updates
Published 13 May 2023

Are you looking for a promising investment opportunity? Look no further than State Government Securities! With the upcoming auction of State Government Securities conducted by the Reserve Bank of India, investors have a chance to secure attractive returns.

These securities, offered by various state governments, provide a safe and reliable investment avenue. In this blog, we will delve into the details of the auction, explore the benefits of investing in State Government Securities, and guide you on how to participate in this lucrative opportunity. Don't miss out on this golden chance to grow your wealth while supporting state development

Sr. No State Amount to be raised (₹ Cr) Additional Borrowing (Greenshoe) Option (₹ Cr) Tenure (Year) Type of Auction
1 Andhra Pradesh 1000 - 16 Yield
2 Assam 1000 - 10 Yield
3 Gujarat 1500 - 8 Yield
4 Tamil Nadu 2000 - 10 Yield
5 Telangana 2000 - 25 Yield
Total   8,500      

Auction Details

  • The auction will be conducted on May 16, 2023 (Tuesday) using the Reserve Bank of India Core Banking Solution (E-Kuber) system.
  • Eligible individuals and institutions can participate in the auction, with a maximum limit of one percent of the notified amount for a single bid per stock.
  • Non-competitive bids can be placed through the Retail Direct portal.
  • Competitive bids should be submitted between 10.30 A.M. and 11.30 A.M., while non-competitive bids should be submitted between 10.30 A.M. and 11.00 A.M.

Contact Information

  • Core Banking Operations Team: Email - cbot@rbi.org.in, Phone: 022-27595666, 022-27595415, 022-27523516
  • IDMD Auction Team: Email - auctionidmd@rbi.org.in, Phone: 022-22702431, 022-22705125
  • Public Debt Office: Email -pdomumbai@rbi.org.in, Phone: 022-22632527, 022-22701299

Additional Instructions

  • Physical bids will be accepted only in the event of system failure and should be submitted to the Public Debt Office before the auction timing ends.
  • The yield percent or price should be expressed up to two decimal points.
  • The maximum yield/minimum price at which bids will be accepted will be determined by the Reserve Bank of India.
  • The results of the auction will be announced on May 16, 2023 (Tuesday), and payment by successful bidders will be made on May 17, 2023 (Wednesday).
  • The new State Government Stocks will bear interest at rates determined by RBI, with interest paid half-yearly.
  • The stocks will be governed by the Government Securities Act, 2006, and the Government Securities Regulations, 2007.

Eligibility and Benefits

Investment in State Government Stocks qualifies as an eligible investment in Government Securities for banks.

Important Information and Links

Relevant Links

Other Useful Information

  • The investment in State Government Stocks is considered as an eligible investment in Government Securities for banks to meet the Statutory Liquidity Ratio (SLR) requirement under Section 24 of the Banking Regulation Act, 1949.
  • The new State Government Stocks will be eligible for the ready-forward facility.
  • The Reserve Bank of India is committed to providing financial education and offers resources such as E-LMS (e-learning modules) and RBI Kehta Hai (RBI says) for a better understanding of financial matters.
  • For any complaints or queries, you can refer to the "Contact Us" section on the RBI website.