The Reserve Bank of India (RBI) has announced Second Tranche of Open Market Purchase of Government of India Securities under G-sec Acquisition Programme (G-SAP 1.0). The central bank on Wednesday said the second tranche of open market purchase of government securities worth ₹35,000 crore under the G-sec Acquisition Programme (G-SAP 1.0) will be conducted on May 20.
“The Reserve Bank will conduct the second tranche of open market purchase of government securities of ₹35,000 crore under the G-sec Acquisition Programme (G-SAP 1.0) on May 20, 2021,” the central bank said in a statement.
On May 20, the RBI will purchase seven government securities of different maturities amounting to ₹35,000 crore. There will be no security-wise notified amount.
The first such auction of ₹25,000 crore was held on April 15. The first auction under G-SAP 1.0 conducted on April 15, 2021 for a notified amount of ₹25,000 crore elicited an enthusiastic response, the RBI governor had said. G-SAP has engendered a softening bias in G-sec yields which has continued since then. Given this positive response from the market, it has been decided that the second purchase of government securities for an aggregate amount of ₹35,000 crore under G-SAP 1.0 will be conducted on May 20, 2021, he added.
Announcing the Monetary policy on April 7, Governor Shaktikanta Das had announced that the RBI will conduct open market purchases of government securities of ₹1 lakh crore under the G-SAP 1.0 in first quarter of the financial year 2021-22.
Never miss a story! Stay connected and informed with Mint.
our App Now!!