The RBI said that it will launch a secondary market government securities acquisition programme, or G-SAP 2.0, worth Rs 1.20 lakh crore in the second quarter of this fiscal year to enable the yield curve to evolve in an orderly manner.
The central bank would acquire government securities worth Rs 1 lakh crore under G-SAP 1.0, with the final transaction of Rs 40,000 crore slated on June 17.
“In my statement of April 7, 2021, I had indicated that in addition to G-SAP, the Reserve Bank will continue to deploy regular operations under the LAF (Liquidity Adjustment Facility), longer-term repo/reverse repo auctions, forex operations and open market operations, including special OMOs, to ensure that liquidity conditions evolve in consonance with the stance of monetary policy and financial conditions remain supportive for all stakeholders,” Shaktikanta Das, Governor of the Reserve Bank of India, stated on Friday. So far this fiscal year, Das stated that the RBI has conducted regular OMOs and injected extra liquidity totaling Rs 36,545 crore (as of May 31) in addition to Rs 60,000 crore under G-SAP 1.0.
Taking these developments into account, Das stated that another operation under G-SAP 1.0 for the procurement of G-Secs worth Rs 40,000 crore will be held on June 17, 2021. A total of Rs 10,000 crore would be spent on the acquisition of State Development Loans (SDLs).
Taking these developments into account, Das stated that another operation under G-SAP 1.0 for the procurement of G-Secs worth Rs 40,000 crore will be held on June 17, 2021. A total of Rs 10,000 crore would be spent on the acquisition of State Development Loans (SDLs).
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