According to a State Bank of India report, the Reserve Bank of India’s holdings in outstanding government securities (G-Secs) climbed from 11.9 percent in June 2024 to 14.2 percent in June 2025. “RBI’s share in outstanding government securities has increased to 14.2 percent in June 2025 from 11.9 percent in June 2024,” stated the study.
This contrasts with lenders’ holdings, which have decreased over the same time frame. Nonetheless, the research stated that the share of insurers has stayed almost constant. Furthermore, according to the research, the Central government is anticipated to borrow approximately Rs 1 lakh crore per month till February 2026, with a smaller sum anticipated in March.
According to the research, bond yields may remain rangebound and move sideways in the coming days as short-term government borrowings and state development loan issuances are expected to compete.
As banks and mutual funds turned into net sellers in recent months, G-Secs were primarily absorbed by the “others” group. In order to prevent excessive speculation and protect the rupee, the central bank has also increased its activity in the foreign exchange market.
The net foreign exchange sales between June and August of 2025 totaled almost $14 billion, which resulted in a permanent liquidity outflow of Rs 1.2 lakh crore from the banking system.
By the end of October, India’s foreign exchange reserves had dropped from $703 billion in June 2025 to $690 billion. Reserves decreased by $30 billion during the same period, from $599 billion to $569 billion, excluding gold and Special Drawing Rights (SDRs).
According to the article, RBI’s involvement probably lasted past August and may have surpassed these numbers by now because of the rupee’s declining trend.
