The Reserve Bank of India (RBI) wants primary dealers (PDs) to increase their underwriting commitment for the auction of government papers during the current fiscal.
The trigger for the RBI move is the increased government borrowings plan. Net government borrowings for the current fiscal has been pegged at Rs 1,07,194 crore, an increase of 11.82 per cent from Rs 95,859 crore, while the gross government borrowing programme has gone up from Rs 1,42,867 crore to Rs 1,66,000 crore.
Sources at primary dealerships said the central bank has been