STATE DEVELOPMENT LOANS (SDLs)

About:

• The OMOs worth ten thousand crore rupees will be conducted as a special case during the current financial year with an aim to improve liquidity and facilitate efficient pricing.
  
  
• The RBI will purchase the SDLs through a multi-security auction using the multiple price method. The result of the auction will be announced on the same day.
  
  
• At present, SDLs are eligible collateral for the Liquidity Adjustment Facility (LAF) along with T-bills, dated government securities and oil bonds. The OMOs will be conducted for a basket of SDLs comprising securities issued by states.