New Delhi [India], April 3 : State governments and Union Territories across the country are expected to raise a total of Rs 2,54,509 crore through market borrowings during the first quarter of the 2026-27 financial year.
According to an indicative calendar released by the Reserve Bank of India (RBI) on Thursday, these borrowings will take place between April and June 2026 as part of the states' efforts to manage their financial requirements.
The central bank, acting as the debt manager for the states, has scheduled regular auctions throughout the three months to facilitate the capital raising.
As a feature of this quarter's borrowing plan, the RBI introduced the Benchmark Issuance Strategy (BIS) on a pilot basis, which the bank has decided to implement starting this financial year. This pilot involves nine specific states, including Andhra Pradesh, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, and Uttar Pradesh.
These nine states alone are projected to borrow Rs 1,53,900 crore during the quarter under the new framework.
"Reserve Bank has been sensitising States about the adoption of Benchmark Issuance Strategy (BIS) for their market borrowings. Adoption of this strategy is aimed at enhancing transparency and providing greater clarity to investors," the release noted.
The central bank explained that the move toward a more structured strategy is part of a long-term effort to stabilise the market for state-level securities.
Under this new strategy, the participating states will issue securities within specific benchmark tenor buckets according to the pre-announced schedule. While the nine states in the pilot lead the borrowing volume, the remaining states and Union Territories are scheduled to raise Rs 1,00,609 crore through traditional market borrowing methods during the same period.
The RBI indicated that other states are expected to adopt the benchmark strategy as the program moves forward.
The RBI maintains the authority to modify the auction dates and the specific amounts in consultation with the respective state governments and Union Territories if market conditions require such changes.
The central bank is committed to managing the process in a way that does not cause volatility in the broader financial system.
The actual amount of borrowings and the details of the States/UTs participating in the auction will be announced two to three days before the actual auction.
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