The states also maintain a consolidated sinking fund (CSF) with RBI to provide a cushion for amortization of market borrowing/liabilities. Having CSF and GRF gives states and investors comfort that SDL payments will be made in all circumstances. On the other hand, risk needs to be looked into in its totality.
I think we are going about things the right way by not rushing our analysis and our decision on whether or not to introduce a digital euro.