The Reserve Bank of India (RBI) has expanded its benchmark issuance strategy (BIS) framework to include seven more states and the Union Territory of Jammu and Kashmir, bringing the total number of states and Union Territories covered to 26. According to reports from Business Standard, the framework will now cover Assam, Goa, Haryana, Mizoram, Nagaland, Tripura and Jammu and Kashmir from the October–December quarter of FY27. This expansion follows the RBI's initial introduction of the BIS on a pilot basis in the first quarter of FY27 for nine states.
The total market borrowing by state governments and Union Territories is expected to reach ₹3.61 trillion during October–December 2026, as reported by Business Standard. The RBI noted that the actual amount of borrowing and participating states would be announced two to three days before the respective auction, depending on the requirements of the governments, approval from the Centre under the Constitution and prevailing market conditions.
The BIS framework has been implemented in phases since its introduction. According to Business Standard, the RBI had initially brought nine states under the framework in the first quarter of FY27: Andhra Pradesh, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Telangana and Uttar Pradesh. Nine more states and Delhi were subsequently included from the second quarter, before the latest expansion to 26 states and UTs.
As reported by Business Standard, the RBI stated it would endeavour to conduct the auctions in a non-disruptive manner and distribute borrowings evenly through the quarter. The central bank retained the flexibility to modify auction dates and amounts in consultation with respective state governments and Union Territories. The framework is designed to enhance transparency and provide greater clarity to investors in the state government bond market.
