RBI steps up bond sales to ₹1 trillion, first time in a decade: Explained
The Reserve Bank of India (RBI) has increased bond sales to ₹1 trillion for the first time in a decade, withdrawing excess liquidity from the banking system. This move follows the central bank's earlier decision to allow banks to raise US dollars, which had supported the rupee but pushed overnight rates below the policy rate. Analysts predict further bond sales or a cash reserve ratio hike as the RBI tightens monetary policy.