Indian Lenders Seek RBI Tweaks to Bond Issuance Program

Imagine the Indian government needs to borrow money by selling bonds.

Banks and other lenders buy these bonds.

However, lenders want some changes to how these bonds are sold.

They're asking the central bank, the RBI, to extend the borrowing period and reduce the size of weekly bond sales so the market can handle them better.

Lenders also want state governments to sell bonds in a different way to avoid buying them at unfavorable prices.

The changes are sought because bond yields have risen recently, increasing borrowing costs for companies.