Despite this high level of government borrowing programme, the RBI, as debt manager, has been able to successfully complete the market borrowing  6  BIS Review 81/2008  programme, over the years, while pursuing its interest rate objectives without jeopardizing external balance, by taking recourse to several initiatives in terms of institution, instruments, incentives and strategies.
Second, an important issue that remains is that we cannot claim that there is a genuine market for government securities in India, when we have a statutory liquidity ratio prescription of 25 per cent.