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The Reserve Bank of India for the first time decided to buy SDL in FY21. SDl is State ______Loans?
A)
Development
B)
Depository
C)
Direct
D)
Data

Correct Answer : Option (A) - Development


In a first of its kind measure, the Reserve Bank of India will buy bonds issued by state government i.e. State Development Loans(SDL) in the current financial year as a special case via secondary market open market operations, to ensure they don't face rising interest costs amid high borrowings. The decision regarding this measure has been taken to ensure that financial conditions don't tighten and to improve Liquidity Adjustment Facility (LAF) along with T-bills, dated government securities and oil bonds.

Published On : July 19, 2021
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