News > RBI’s G-Secs holding may go up by Rs 2 lakh cr next fiscal: Report
RBI’s G-Secs holding may go up by Rs 2 lakh cr next fiscal: Report
The Outreach | 13/02/2022 04:12 PM | Click to read full article
Given the record government borrowing plan of Rs 14.3 lakh crore for FY23, the Reserve Bank of India (RBI), which already holds as much as 17 per cent of the Rs 80.8 lakh crore outstanding government bonds, will have to find buyers for at least Rs 2 lakh crore, as banks typically opt for short-term debt of under 10-years.
It also pointed out that had the government allowed the G-Secs inclusion into international bond indices, as widely expected, this will have seen at least Rs 1.5 lakh crore USD 15-20 billion of additional ownership by foreigners, helping the RBI manage the borrowing programme easily.