RBI's G-Secs Holdings Rise Amidst Government Borrowing and Forex Sales

The Reserve Bank of India (RBI) has been buying more of the special promises (called government securities) that the government sells to borrow money.

This means the RBI has more of these promises now than it did last year.

Banks have fewer of these promises, but insurance companies have about the same amount.

The government plans to sell a lot of these promises every month for a long time to raise money.

Because there will be so many available, the price or 'yield' of these promises is expected to stay about the same.

At the same time, the RBI has been selling dollars from its foreign money savings to help keep the Indian money (rupee) from losing too much value.

This selling of dollars has taken some money out of the banking system.