 "RBI wants states’ fiscal condition to set loan price")
The Reserve Bank of India (RBI) on Wednesday proposed to make the state development loan market more structured, by moving the issuances towards a more market-determined pricing based on a state’s fiscal condition.
Besides, the central bank said such issuance would be conducted on a weekly basis, instead of every alternate week, so that the bunched-up issuances could be reduced in size.
State loans, or bonds issued by state governments, have increased in size in recent times, as states engage in farm debt waivers. The weekly issuance size frequently rises up to Rs 22,000 crore to Rs 24,000 crore, as against Rs
