The Reserve Bank of India has various tools, including open market operations, to help ensure smooth conduct of government’s market borrowing, Deputy Governor Rakesh Mohan told a TV channel. He refused to comment on the bond yields when asked if the large market borrowing will push up bond yields. RBI has a number of tools which it can use flexibly, he said.
The central bank has been conducting open market operations, buying securities through the anonymous order-matching module of the Negotiated Dealing System. Latest data from RBI showed that it had bought Rs 1,135 crore of securities in the week up to January 16. In the previous week, it bought Rs 979 crore of securities and sold Rs 311 crore of securities.