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Business
RBI to Roll Out Benchmark Issuance Strategy to Seven New States Including J&K from Q3 FY27
✍️ Business Standard
🗓 02 Oct 2026, 01:01 AM
👁 9
The Reserve Bank of India announced that from the third quarter of fiscal year 2027 it will extend its benchmark issuance framework to seven additional states, including Jammu and Kashmir.
The Reserve Bank of India (RBI) issued a formal notice that its benchmark issuance strategy will be expanded to seven more states, with Jammu and Kashmir among them, starting in the third quarter of FY27. The move is part of the central bank’s effort to deepen market participation and improve liquidity across regional markets.
The benchmark issuance framework, introduced earlier for a limited set of states, sets standard terms for government securities and aims to create a uniform pricing environment. By extending it, the RBI expects to attract a broader investor base, lower borrowing costs for state governments, and enhance the transmission of monetary policy.
Implementation will be phased, with the RBI coordinating with the finance ministries of the newly included states to align auction calendars and settlement processes. The central bank has indicated that performance will be reviewed periodically to ensure the intended benefits materialise.
The benchmark issuance framework, introduced earlier for a limited set of states, sets standard terms for government securities and aims to create a uniform pricing environment. By extending it, the RBI expects to attract a broader investor base, lower borrowing costs for state governments, and enhance the transmission of monetary policy.
Implementation will be phased, with the RBI coordinating with the finance ministries of the newly included states to align auction calendars and settlement processes. The central bank has indicated that performance will be reviewed periodically to ensure the intended benefits materialise.