The Reserve Bank of India (RBI) has responded to tight liquidity conditions in the banking system by announcing a significant reduction in the government’s treasury bill sales and introducing a new selection of bonds for the Centre’s buyback operations. This move aims to alleviate cash constraints for banks, which have been exacerbated by muted government spending during the ongoing general elections. By reducing the supply of treasury bills and offering bonds for repurchase at acceptable prices, the RBI seeks to inject liquidity into the banking system and ease borrowing costs for banks.
India defies West Asia war concerns as Q4 GDP growth hits 7.8%; risks remain ahead
India’s economy surged by a better-than-expected 7.8% in the March quarter, exceeding forecasts and pushing FY26 growth to 7.7%. This robust performance was driven by
June 6, 2026