{"id":8445,"date":"2023-04-12T08:46:53","date_gmt":"2023-04-12T03:16:53","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=8445"},"modified":"2025-03-29T03:04:13","modified_gmt":"2025-03-28T21:34:13","slug":"state-development-loans-sdl","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/state-development-loans-sdl\/","title":{"rendered":"State Development Loans (SDL)"},"content":{"rendered":"<h2><strong>About State Development Loans:<\/strong><\/h2>\n<ul>\n<li>These are <strong>dated securities<\/strong> issued by states for meeting their market borrowings requirements.<\/li>\n<li><strong>Purpose: <\/strong>To meet the budgetary needs of state governments.<\/li>\n<li>The higher the fiscal strength of a state, the lower will be the interest rate (yield) it has to pay for the SDL borrowings.<\/li>\n<li>These are securities and they are <strong>auctioned by the RBI through<\/strong> the <strong>e-Kuber<\/strong> which is a dedicated electronic auction system for government securities and other instruments.<\/li>\n<li>Reserve Bank of India holds <strong>SDL auctions once a fortnight<\/strong>.<\/li>\n<li>The rate of interest or yield of SDL securities is determined through auction.<\/li>\n<li>The <strong>interest rate will be slightly higher than that of Central Government securities<\/strong> (G-secs) of matching tenure.<\/li>\n<li>The investors in SDL are basically commercial banks, mutual funds, and insurance companies that are attracted by the slightly higher interest<\/li>\n<\/ul>\n<h3>What are dated securities?<\/h3>\n<ul>\n<li>Dated Government securities are long-term securities or bonds of the government that carries a fixed or floating coupon (interest rate).<\/li>\n<li>Securities are issued by the <strong>government (centre or state) for mobilizing funds.<\/strong><\/li>\n<li>Mostly financing the <strong>fiscal deficit<\/strong> is the most important purpose for issuing dated securities.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1) What is Fiscal deficit?<\/h3>\n<p>Fiscal deficit refers to the difference between a government&#8217;s total expenditure and its total revenue in a particular financial year. It is a measure of how much a government needs to borrow to meet its expenses.<\/p>\n<p><strong>Source:\u00a0<\/strong>\u00a0<a href=\"https:\/\/www.business-standard.com\/economy\/news\/only-four-states-raise-nearly-rs-5-800-crore-through-bond-auction-123041101045_1.html\" target=\"_blank\" rel=\"nofollow noopener\"><u>Four states raise Rs 5,800 crore through SDLs at bond auction<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>State Development Loans are dated securities issued by states for meeting market borrowings requirements.<\/p>\n","protected":false},"author":5,"featured_media":8446,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-8445","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/8445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=8445"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/8445\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/8446"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=8445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=8445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=8445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}