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RBI Bet On Yields Faces Growth Risk

The projected economic rebound of FY22 will open up new avenues for lending and leave banks with little incentive to buy additional government securities, economists said, posing a challenge to RBI’s efforts to keep bond yields low to smoothen the government’s record borrowing plans. However, as credit demand revives along with the economy, banks will find more profitable avenues for their money.

Source- Live Mint


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