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The Reserve Bank of India will aim to purchase Rs 10,000 crore worth of bonds issued by more than a dozen state governments known as State Development Loans (SDLs) in market parlance, next week for the second time.
“It has been decided to conduct another purchase auction of SDLs under Open Market Operations (OMOs) for an aggregate amount of ₹10,000 crores on November 05, 2020,” the central bank said in a release Thursday.
There are 15 states including West Bengal, Uttar Pradesh, Tamil Nadu, Telangana, Punjab, Rajasthan and a cluster of North Eastern states.
RBI has notified a select series of papers with residual maturities falling between 2029-2031.
Earlier the RBI conducted the first ever such open market operations for state government papers on October 22. Such a move has brought down yields lowering borrowing costs for state governments.
Mint Road announced such an operation in its bi-monthly policy on October 9.
“It has been decided to conduct another purchase auction of SDLs under Open Market Operations (OMOs) for an aggregate amount of ₹10,000 crores on November 05, 2020,” the central bank said in a release Thursday.
There are 15 states including West Bengal, Uttar Pradesh, Tamil Nadu, Telangana, Punjab, Rajasthan and a cluster of North Eastern states.
RBI has notified a select series of papers with residual maturities falling between 2029-2031.
Earlier the RBI conducted the first ever such open market operations for state government papers on October 22. Such a move has brought down yields lowering borrowing costs for state governments.
Mint Road announced such an operation in its bi-monthly policy on October 9.
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