RBI purchases 47% of govt’s total bond issuances so far in FY26

By buying bonds from the secondary market, the central bank infused liquidity and helped maintain orderly market conditions, experts said

- OUR CORRESPONDENT

In order to support liquidity in the banking system, the Reserve Bank of India (RBI) has purchased government securities equivalent to 47 per cent of the Centre’ total bond issuances so far in FY26, according to public data.

Data from RBI showed that the Centre raised Rs 13,65,000 crore from April 4, 2025, to February 13 this year by issuing government securities as part of its gross borrowing programme. In parallel, the RBI conducted Open Market Operations (OMO) purchase auctions totalling Rs 6,39,203 crore, injecting durable liquidity into the banking system.

The large-scale purchases came amid sustained government borrowing, which typically absorbs liquidity from the banking system and exerts upward pressure on bond yields.

By buying bonds from the secondary market, the central bank infused liquidity and helped maintain orderly market conditions, experts said.