Auction of State Government Securities
Distilled Policy Brief
- State Governments offered to sell stock by auction for an aggregate amount of ₹25,100 Crore through the Reserve Bank of India Core Banking Solution (E-Kuber) system.
- Up to ten per cent of the notified amount is allocated under the Scheme for Non-competitive Bidding Facility, accessible to individual investors through the Retail Direct portal.
- The State Government Stocks are governed by the Government Securities Act, 2006 and qualify as eligible investments for Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949.
🎯 Prelims High-Yield Examination Points
State Government Securities (SDLs) are eligible investments for commercial banks to meet Statutory Liquidity Ratio (SLR) requirements under Section 24 of the Banking Regulation Act, 1949.
⚖️ Mains Analytical & Syllabus Linkages
Examining state debt issuance mechanisms and retail participation platforms helps analyze state government borrowing capacity, fiscal management, and financial market integration.
🎯 UPSC Prelims Practice Drill
With reference to the State Government Securities issued through auctions conducted by the Reserve Bank of India, consider the following statements: 1. State Government Stocks are governed by the provisions of the Government Securities Act, 2006. 2. Investments in State Government Stocks qualify as eligible investments for the Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. 3. Individual investors can participate in auctions through the Scheme for Non-competitive Bidding Facility via the RBI Retail Direct portal. Which of the statements given above are correct?
- [A] 1 and 2 only
- [B] 2 and 3 only
- [C] 1 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
All three statements are correct. State Government Stocks are governed by the provisions of the Government Securities Act, 2006 and qualify as eligible investments for meeting Statutory Liquidity Ratio (SLR) requirements under Section 24 of the Banking Regulation Act, 1949. Furthermore, individual investors can participate under the Scheme for Non-competitive Bidding Facility through the RBI Retail Direct portal.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.