Mumbai, Oct. 12 -- India's benchmark 10-year government bond yield surged 10 basis points to 7.40 per cent on Monday following the Reserve Bank of India's (RBI) liquidity withdrawal measures.

As per market experts, tighter banking system liquidity and rising borrowing costs could keep bond yields elevated and weigh on credit growth and interest-sensitive sectors.

The apex bank has increased the minimum daily Cash Reserve Ratio (CRR) maintenance requirement for scheduled banks to 99 per cent from the existing 90 per cent, effective from the fortnight beginning October 16, 2026.

The decision, announced in a notification issued by the RBI on Friday, follows a review of prevailing liquidity conditions. Under the revised framework, schedule...