The Reserve Bank of India (RBI) has decided to conduct another operation under G-SAP 1.0 for purchase of G-Secs of ₹40,000 crore on June 17, 2021. Of this, ₹10,000 crore would constitute purchase of State Development Loans (SDLs).
It has also been decided to undertake G-SAP 2.0 in Q2:2021-22 and conduct secondary market purchase operations of ₹1.20 lakh crore to support the market. “The specific dates and securities under G-SAP 2.0 operations will be indicated separately. We do expect the market to respond appropriately to this announcement of G-SAP,” RBI Governor Shaktikanta Das said.
In his previous statement, the Governor had indicated that in addition to G-SAP, the Reserve Bank will continue to deploy regular operations under the LAF, 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.
During the current year so far, the Reserve Bank has undertaken regular OMOs and injected additional liquidity to the tune of ₹36,545 crore (up to May 31) in addition to ₹60,000 crore under G-SAP 1.0.
A purchase and sale auction under operation twist has also been conducted on May 6, 2021 to facilitate the smooth evolution of the yield curve. Going forward, the Reserve Bank will continue to conduct regular operations for liquidity management, he added.
Published - June 04, 2021 12:26 pm IST
