RBI’s stake in government securities to increase by ₹ 2 lakh crore in FY23, reveals report

In view of the government’s plan to take record debt for the next financial year 2022-23, the Reserve Bank of India’s (Reserve Bank of India) stake in government securities ie G-Secs may increase by about Rs 2 lakh crore. . The central bank already holds 17 per cent stake in the outstanding government bonds worth Rs 80.8 lakh crore.

Giving this information in a report, it has been said that due to the large lending program, the Reserve Bank will have to find buyers for bonds of at least Rs 2 lakh crore as banks usually have short-term loans of less than 10 years. Select the option.

In the budget 2022-23, the gross debt of the Center is estimated to be a record Rs 14.3 lakh crore. The gross debt combined with the states is estimated at Rs 23.3 lakh crore and net debt at Rs 17.8 lakh crore. The budget also proposes a payment of Rs 3.1 lakh crore in the next financial year.

The central bank’s share is second only to financial institutions in the government’s outstanding bonds of Rs 80.8 lakh crore. Financial institutions are the largest shareholders in the outstanding bonds.

According to the SBI Research report, by the end of January, government securities maturing by 2061 stood at Rs 80.8 lakh crore. Of these, 37.8 per cent securities were with banks, 24.2 per cent were with insurance companies, ie they held 62 per cent of the securities in total. At the same time, the central bank had 17 percent of the securities.