E-Paper
RBI to conduct ₹20,000 crore bond purchase under G-SAP today
With the bond-buying plan, the RBI plans to keep a lid on long-term interest rates amid a massive government borrowing programme.
The Reserve Bank of India (RBI) will carry out open market purchase of government bonds worth ₹20,000 crore under the G-sec Acquisition Programme (G-SAP 2.0) on Thursday. RBI governor Shaktikanta Das had said earlier this month that the bank will conduct these purchases to support the market.
The RBI has kept a target of purchansing government securities of ₹1.2 lakh crore under the G-SAP 2.0 in the second quarter of the financial year.
The next purchase for ₹20,000 crore is scheduled to take place on July 22.
The first such auction of ₹25,000 crore was held on April 15 this year. The second purchase of ₹35,000 crore took place on May 20.
With the bond-buying plan, the RBI plans to keep a lid on long-term interest rates amid a massive government borrowing programme.
The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills.
The RBI has said it remains committed to use all instruments at its command to revive the economy by maintaining congenial financial conditions, mitigate the impact of Covid-19 and restore the economy to a path of sustainable growth while preserving macroeconomic and financial stability.
G-SAP is running alongside RBI's regular operations including Liquidity Adjustment Facility (LAF), open market operations (OMOs) and Operation Twist.
