The Reserve Bank said on Monday it would ensure adequate credit flow to productive sectors and manage the Rs 4.5 lakh crore (Rs 4.5 trillion) government borrowing smoothly.
"The RBI will ensure that the needs of the productive credit will be met. . . we are reviewing the situation and will use available instruments to conduct the borrowing programme in a non-disruptive manner," RBI deputy governor Shymala Gopinath told reporters in Mumbai.
Earlier, while announcing the Budget, Finance Minister Pranab Mukherjee projected the government borrowing in 2009-10 at Rs 4.5 lakh crore.
Apex bank representatives will meet the government side this month to take a view on the borrowing calendar, she said.
The central bank is assessing current market developments and will review its GDP and inflation target for FY 10 in its July policy, Gopinath said.
Also, with the banking system having adequate liquidity, any unusual movement in yields is unlikely, Gopinath said.
"As long as adequate liquidity (is there) in the system, we do not expect any unusual movement in yields," she said.
