MUMBAI, Sept 6 – The Reserve Bank of India (RBI) sold government bonds from its portfolio for an eighth consecutive week, withdrawing liquidity from the banking system, but the sale was the smallest in this period, according to data released on Friday.
The RBI sold bonds worth 10.80 billion rupees ($128.67 million), in the week ended Aug. 30, bringing the total sale for the eight-week period to 182.45 billion rupees, the data showed.
The central bank typically sells or buys bonds to adjust banking system liquidity and rates to align them with its monetary policy.
India’s banking system liquidity surplus, which was elevated during July and August, has remained comfortable in September. ($1 = 83.9330 Indian rupees) (Reporting by Dharamraj Dhutia)
