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RBI Holds ₹1 Trillion Maturing Bonds: Borrowing Target Rises

4 February 20251 min read
BANKING & FINANCERBI Holds ₹1Trillion MaturingBonds: BorrowingTarget Rises4 February 2025safalsetu.com

Why in the news

Government bonds of about ₹1 trillion held by the Reserve Bank of India fall due next fiscal year, and the Centre will not swap them, which lifts its borrowing plan.

Key facts

  • Usual practice: maturing paper is exchanged for longer-dated debt well before the Budget.
  • This time: no swap with RBI; market-based operations will handle it.
  • Economic Affairs Secretary Ajay Seth said the bonds can go to the market, to public institutions or RBI.
PeriodGross borrowing target
Current fiscal year₹14.01 trillion
2025-26₹14.82 trillion

Exam angle

  • Target for 2025-26: ₹14.82 trillion.
  • Related terms: bond swap, redemption, market-based operations.

Test yourself

1. What is the gross borrowing target for 2025-26 mentioned in the context of RBI's maturing sovereign bonds?

The target rose from ₹14.01 trillion to ₹14.82 trillion.

2. How does the government plan to deal with the roughly ₹1 trillion bonds held by RBI that mature next year?

No swap with RBI is planned; market-based operations will be used.

3. Who stated that the maturing bonds can be placed in the market with public institutions or RBI?

Economic Affairs Secretary Ajay Seth made the remark.

This topic is part of Daily Current Affairs 4 February 2025 (14 topics).

All topics of the dayDay quizFebruary 2025

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