DEBT BUYBACK SCHEME BY RBI

Given the improving revenues and surplus funds available with the State Governments, the Reserve Bank of India (RBI) announced a debt buy-back scheme for the state governments. Two State Governments viz, Orissa and Rajasthan, have been permitted to buy back specified State Development Loans (SDLs) issued by each of them respectively. The move would prove to be a step towards the development of the state government debt markets.