RBI’s stake in government securities to increase by Rs 2 lakh crore in 2022-23: Report

The Reserve Bank of India’s holding in government securities (G-Secs) may increase by about Rs 2 lakh crore in view of the government’s plan to take record debt for the next financial year 2022-23. The central bank already holds 17 per cent stake in 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 take short-term loans of less than 10 years. Select the option.

The gross debt of the Center in Budget 2022-23 is estimated to be a record Rs 14.3 lakh crore. The gross debt together with the states is estimated at Rs 23.3 lakh crore and the net debt at Rs 17.8 lakh crore. The budget also proposes to pay 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 outstanding bonds.

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