RBI extends benchmark issuance strategy to 7 more states, J&K from Q3 FY27 | Economy & Policy News

The Reserve Bank of India (RBI) on Thursday extended its benchmark issuance strategy (BIS) framework to seven more states and the Union Territory of Jammu and Kashmir, taking the total number of states and Union Territories (UTs) covered under the framework to 26.

The framework, aimed at enhancing transparency and providing greater clarity to investors, will now cover Assam, Goa, Haryana, Mizoram, Nagaland, Tripura and Jammu and Kashmir from the October–December quarter of FY27.

The RBI had introduced the BIS on a pilot basis in the first quarter of FY27 for nine states: Andhra Pradesh, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Telangana and Uttar Pradesh. Nine more states and Delhi were brought under the framework from the second quarter.

The total market borrowing by state governments and UTs is expected to be ₹3.61 trillion during October–December 2026, according to the RBI.

The central bank said the actual amount of borrowing and the participating states and UTs would be announced two to three days before the respective auction and would depend on the requirements of the governments, approval from the Centre under the Constitution and prevailing market conditions.

The RBI said it would endeavour to conduct the auctions in a non-disruptive manner and distribute borrowings evenly through the quarter, while retaining the flexibility to modify auction dates and amounts in consultation with the respective state governments and UTs.