The Reserve Bank of India (RBI) announced the extension of its Benchmark Issuance Strategy (BIS) to seven additional states and one Union Territory starting from the third quarter of fiscal year 2026-27. The newly included entities are Assam, Goa, Haryana, Mizoram, Nagaland, Tripura, and the Union Territory of Jammu and Kashmir. The total market borrowings by state governments and UTs for October to December 2026 are projected at ₹3,60,820 crore, according to rbi.org.in.
The BIS was initially launched on a pilot basis in the first quarter of FY 2026-27 with nine states, including Andhra Pradesh and Maharashtra. It was expanded in the second quarter to nine more states and one UT, such as Punjab and Delhi. Following consultations and positive feedback, the RBI decided to bring in seven more states and one UT from Q3. The indicative calendar for market borrowings for these states has been prepared in coordination with them, with actual auction details to be announced shortly before the auction dates, the RBI stated.
This phased expansion of the BIS framework aims to enhance transparency and provide greater clarity to investors regarding state government borrowings. The strategy allows for a more predictable issuance calendar, which can improve market efficiency. The total borrowing target of ₹3.6 trillion for the quarter reflects the ongoing fiscal management efforts by states amid evolving economic conditions. The RBI's approach aligns with its broader mandate to support orderly market functioning and fiscal discipline across states.
The RBI will release detailed press statements two to three days before each auction, specifying the participating states and the exact borrowing amounts. The indicative calendar and the extension of BIS to additional states mark a continued effort to institutionalize market borrowing practices, with the next auction cycle scheduled within the October to December 2026 quarter, as per the RBI's official release.