The size may be enhanced in the subsequent auctions, depending on market response, RBI said in the statement.
On October 9, RBI had announced intent in the Statement on Developmental and Regulatory Policies OMOs to purchase state government bonds.
The central bank said it will buy bonds maturing between January 2029 and March 2031. It is offering to purchase bonds issued by 15 states including Assam, Bihar, Gujarat, Jammu & Kashmir, Kerala, Madhya Pradesh and Maharashtra.
At present, SDLs are eligible collateral for Liquidity Adjustment Facility (LAF) along with T-bills, dated government securities and oil bonds.
On October 9, RBI had said it would conduct OMOs in SDLs as a special case during the current financial year. The OMOs would be conducted for a basket of SDLs comprising securities issued by states.