RBI's record bond purchases keep lending smooth amid massive borrowings
The Reserve Bank of India (RBI) just made a big move—buying a large share of the Centre's recent government securities this week (March 2026).
This was done to help banks lend smoothly, even as the Centre continued to borrow heavily.
By snapping up so many bonds, RBI kept interest rates
By snapping up so many bonds, RBI kept interest rates (yields) from spiking—especially the key 10-year yield, which stayed around 6.60%.
That helped maintain orderly market conditions and steady yields, which is good news if you care about jobs or investments.
To fix this, RBI not only bought more bonds
With the government borrowing so much, money in the system got tight and rates started creeping up.
To fix this, RBI not only bought more bonds than ever, with purchases intensifying this week (March 2026) to address tightening, but also took steps to keep liquidity available, making it easier for banks to lend and keeping things steady as financial conditions tightened recently.