Money & Banking

Under G-SAP, RBI to purchase ₹1.20 lakh cr worth G-Secs in Q2

Our Bureau Mumbai | Updated on June 04, 2021

Under the programme, RBI commits upfront to a specific amount of open market purchases for an orderly yield curve.

The Reserve Bank of India (RBI) has decided to purchase Government Securities (G-Sec) aggregating ₹1.20 lakh crore in the second quarter (July-September) of FY22 under its G-Sec Acquisition Programme or G-SAP 2.0.

Under G-SAP 2.0, RBI will be purchasing G-Secs aggregating ₹20,000 crore more than under G-SAP 1.0.

The third and last tranche of open market purchase of G-Secs aggregating ₹40,000 crore under G-SAP 1.0 will be held on June 17, 2021. Of this, ₹10,000 crore would constitute a purchase of state development loans (SDLs).

Under the programme, RBI commits upfront to a specific amount of open market purchases of G-Secs to enable a stable and orderly evolution of the yield curve amidst comfortable liquidity conditions.

The endeavour is to ensure congenial financial conditions for the recovery to gain traction.

 

Published on June 04, 2021

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