During the 1990s, the Reserve Bank used to complete the combined borrowing programme of all the States generally in two or more tranches through issue of bonds with a pre-determined coupon and pre-notified amounts for each State (Traditional Tranche Method).
High statutory pre-emption  2  BIS Review 83/2009  in the form of statutory liquidity ratio (SLR) and the small size of State Government borrowings ensured the success of these primary issues. In 1997, State Governments were given the option to enter the market individually to raise resources using the tap method or the auction method.