Perhaps, the cash surplus SGs could lend to those in deficit at a rate linked to the market. Of course, this would need to be budgeted for. iii. Mandating  investment  in Consolidated  Sinking  Find (CSF)/  Guarantee  Redemption Fund (GRF): Investment in CSF and GRF with RBI, is voluntary at present.
These reserves are intended to provide a cushion to the SGs in meeting the future repayment obligations. States which maintain these funds are holding different levels of 10  investments in terms of their outstanding liabilities.