Recently, the Reserve Bank of India (RBI) bought treasury bills from the secondary market. This is no speculation. The weekly statistical supplement (WSS), which the central bank puts up on its website every Friday, says that.
There is speculation in the market on whether the RBI has started buying treasury bills from the primary market too. We don’t know for sure. The Clearing Corporation of India Ltd, the platform for settling such deals, does not identify the central bank as a buyer. Of course, the RBI could come under the category of “others” which includes primary dealers, insurance firms, provident funds,
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