<p style=”margin-bottom: 13px; text-align: center;”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”background:white”><span style=”font-family:"Cambria","serif"”><span style=”color:black”>Source – live mint</span></span></span></b></span></span></span></p>
<p style=”margin-bottom: 13px; text-align: center;”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”background:white”><span style=”font-family:"Cambria","serif"”><span style=”color:black”>GS Paper 3</span></span></span></b></span></span></span></p>
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<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”background:white”><span style=”font-family:"Cambria","serif"”><span style=”color:black”>Context – T</span></span></span></b><span style=”background:white”><span style=”font-family:"Cambria","serif"”><span style=”color:black”>he Reserve Bank of India on Friday said that it will conduct the first-ever purchase auction of state government bonds for an aggregate amount of ₹10,000 crores through open market operations (OMO)</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”background:white”><span style=”font-family:"Cambria","serif"”><span style=”color:black”>What are state development loans?</span></span></span></b></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-family:"Cambria","serif"”><span style=”color:black”>State Development Loans (SDLs) are dated securities issued by states for meeting their market borrowings requirements. In effect, the SDL is similar to the dated securities issued by the central government. The purpose of issuing State Development Loans is to meet the budgetary needs of state governments. Each state can borrow up to a set limit through State Development Loans.</span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-family:"Cambria","serif"”><span style=”color:black”>HIGHLIGHTS </span></span></b></span></span></span></p>
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<li style=”margin-left:8px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”> <span style=”background:white”><span style=”font-family:"Cambria","serif"”><span style=”color:#212121″>Depending on market response, the size of the auctions may be enhanced in the subsequent auctions</span></span></span></span></span></span></li>
<li style=”margin-left:8px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”background:white”><span style=”font-family:"Cambria","serif"”><span style=”color:#212121″>RBI reserves the right to decide on the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher/lower than the aggregate amount, accept or reject bids.</span></span></span></span></span></span></li>
<li style=”margin-bottom:13px; margin-left:8px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”background:white”><span style=”font-family:"Cambria","serif"”><span style=”color:#212121″>The RBI had announced its decision to conduct the OMO of these state development loans to ensure liquidity and support the </span></span></span><span style=”background:white”><span style=”font-family:"Cambria","serif"”>state government borrowing program<span style=”color:#212121″>.</span></span></span></span></span></span></li>
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