Bonds

State Development Loans (SDLs)

State-government stock — a spread over G-secs for the same route.

What it is

Dated securities of state governments, auctioned like Central stock and held in the same RDG account. They can trade at a spread to Central G-secs, reflecting state finances, duration and liquidity.

Min ticket: Rs.10,000 face in primary auctions (varies by auction) · No demat — RBI/BLA account

How to buy it

Same Retail Direct account — SDL auctions appear alongside Central auctions.
Coupons half-yearly, principal at maturity, secondary on NDS-OM.
Compare the spread over the Central curve before buying.

Costs

No RBI scheme fees
Wider bid-ask than Central stock

Liquidity

NDS-OM listed but thinner than Central G-secs.

Regulation

RBI auctions on behalf of states; CCIL settlement via NDS-OM.

Risks that bite

Duration risk plus state-specific spread widening
Lower secondary liquidity than Central stock

Compare on Retail Direct →

Tax FAQ

How is State Development Loans (SDLs) taxed?

Interest is taxed at your slab. Transfer or redemption gains follow the post-23-Jul-2024 rules: listed paper held over 12 months is LTCG at 12.5% without indexation, short-term gains join income at slab, and unlisted bonds are always deemed short-term under section 50AA.

Educational, not advisory — and never a quote. LetsInvest is a research publication, not a SEBI-registered investment adviser, and we run no bond-price or yield feed. YTM, ladder and tax outputs are illustrations of numbers you enter. Confirm anything that matters on RBI Retail Direct or the issuer's offer document before you act.

Sources

Reviewed 24 Sept 2026. Yields move — the RBI portal, CCIL and the tax department are the authority, and this hub links straight to them.

RBI - Retail Direct Scheme (press release 2021-2022/1183, 12 Nov 2021)RDG accounts; primary-auction non-competitive bids; NDS-OM odd-lot/RFQ secondary; UPI/internet-banking payments; no scheme fees.
CCIL - RBI NDS-OM (trading platform operated by CCIL on behalf of RBI)CCIL operates the NDS-OM trading and settlement stack behind Retail Direct secondary trades.
CBDT - FAQs on the new capital-gains regime (PIB, 24 Jul 2024, PRID 2036604)Two holding periods since 23 Jul 2024 (12 months listed, 24 months other); other-LTCG at 12.5% without indexation.
Income Tax Department - Tax on sale of debentures (as amended by Finance Act, 2026)Post-23-Jul-2024 holding table (listed debentures/G-secs: 12 months; unlisted: deemed STCG).
Income Tax Department - Section 50AA (special provision for specified securities)Unlisted bonds/debentures transferred, redeemed or matured on/after 23 Jul 2024 are deemed short-term.

Tax FAQ

How is State Development Loans (SDLs) taxed?

Sources

Reviewed 24 Sept 2026. Yields move — the RBI portal, CCIL and the tax department are the authority, and this hub links straight to them.