RBI hits 1 trillion rupee net debt sale record
India's central bank has net sold bonds worth 1 trillion rupees this financial year to withdraw excess banking liquidity. Treasury officials expect further bond sales and potential policy tightening in the coming months.
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India's central bank net sold bonds worth 1 trillion rupees this fiscal year, marking its largest annual debt sale in over a decade. The aggressive liquidity drain comes as overnight rates dipped below the policy rate following foreign exchange interventions. Treasury officials expect open-market operations to double by December to tighten monetary conditions.
