The Reserve Bank of India has officially released the indicative calendar for market borrowings by State Governments and Union Territories for the third quarter covering October to December 2026. This announcement aims to enhance transparency and provide greater clarity to market investors regarding upcoming state-level financial issuances.
Overview of State Market Borrowings
The Reserve Bank of India (RBI) has projected that the total quantum of market borrowings undertaken by various State Governments and Union Territories during the quarter of October to December 2026 will reach ₹3,60,820 crore. To streamline these financial operations and offer better predictability, the RBI continues to utilize and expand its Benchmark Issuance Strategy (BIS) framework.
Expansion of the Benchmark Issuance Strategy
The Benchmark Issuance Strategy was initially introduced on a pilot basis during the first quarter of financial year 2026-27 with nine participating states. Subsequently, the framework was extended to include nine more states and one union territory in the second quarter. Building upon the positive experience gained and after receiving concurrence from additional regions, the BIS framework is further expanding starting from the October–December 2026 quarter to cover six more states—Assam, Goa, Haryana, Mizoram, Nagaland, and Tripura—along with the Union Territory of Jammu and Kashmir.
Key Details of the Announcement
| Parameter | Detail |
|---|---|
| Issuing Authority | Reserve Bank of India (RBI) |
| Announcement Type | Indicative Calendar for Market Borrowings |
| Target Period | October – December 2026 (Q3) |
| Expected Total Borrowings | ₹3,60,820 crore |
| Official Website | rbi.org.in |
Auction Process and Conditions
The indicative calendar has been structured into two annexures: Annex 1 covers states and union territories that have adopted the Benchmark Issuance Strategy, while Annex 2 details the schedule for the remaining states and union territories. The actual amount borrowed and the specific states participating in individual auctions will be communicated through press releases two to three days prior to each scheduled auction day.
Several factors govern the final execution of these market borrowings. Participation depends heavily on the specific financial requirements of individual State Governments and Union Territories, mandatory approvals obtained from the Government of India under Article 293(3) of the Constitution of India, and prevailing financial market conditions. The Reserve Bank of India has stated its intention to conduct all auctions in a non-disruptive manner by distributing the borrowings evenly across the entire quarter, while retaining the right to modify dates and auction amounts in consultation with the respective governments.
What Investors and Stakeholders Should Do Next
Market participants, investors, and financial institutions should closely monitor the official Reserve Bank of India portal for upcoming press releases detailing specific auction dates, participating states, and exact borrowing amounts. Reviewing Annex 1 and Annex 2 of the official notification will provide deeper insights into the scheduled issuances under the Benchmark Issuance Strategy framework.
Frequently Asked Questions
What is the total expected market borrowing by States and UTs for October-December 2026?
The total quantum of market borrowings by State Governments and Union Territories for the quarter is expected to be ₹3,60,820 crore.
Which new regions are being added to the Benchmark Issuance Strategy in Q3 2026-27?
The BIS framework is being extended to Assam, Goa, Haryana, Mizoram, Nagaland, Tripura, and the Union Territory of Jammu and Kashmir.
How will participants know the exact details of upcoming auctions?
The actual amount of borrowings and participating states will be intimated via press releases two to three days prior to the actual auction day.
What constitutional approval is required for state borrowings?
State borrowings depend on approval from the Government of India under Article 293(3) of the Constitution of India.
Where can the official market borrowing calendar be found?
The indicative calendars are provided in Annex 1 and Annex 2 of the official RBI press release available on the Reserve Bank of India website.
Official Links
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