Sign In
Learn bits
Economy
Pradeep Kumar

09/04/21 10:50 AM IST

RBI’s first purchase under G-SAP 1.0

In news

A day after announcing the introduction of the G-sec Acquisition Programme (G-SAP 1.0), the Reserve Bank of India (RBI) announced the Open Market Purchase of Government of India Securities under the programme"

Details
  • “The Reserve Bank will conduct open market purchase of government securities of ₹1 lakh crore under the G-sec Acquisition Programme (G-SAP 1.0) in Q1 2021-22 with a view to enabling a stable and orderly evolution of the yield curve.
  • The first purchase of government securities for an aggregate amount of ₹25,000 crore under G-SAP 1.0 will be conducted on April 15
  • The central bank will purchase five types of government securities via a multi-security auction using multiple price methods.
What is G-SAP?
  • The RBI periodically purchase Government bonds from the market through Open Market Operations (OMOs).
  • The G-SAP is in a way an OMO but there is an upfront commitment by the central bank to the markets that it will purchase bonds worth a specific amount.
  • The idea is to give a comfort to the bond markets. 
Source: The Hindu

More Related Current Affairs View All

21 Sep

India Achieves Tier 1 Status in Global Cybersecurity Index 2024

' India has secured Tier 1 status in the Global Cybersecurity Index (GCI) 2024, published by the International Telecommunication Union (ITU).' The GCI is a comprehensive assessm

Read More

21 Sep

A new White Revolution

'Operation Flood, launched in 1970, ushered in the White Revolution and transformed the dairy sector in India.' Dairy cooperatives procured 660 lakh kg of milk per day in 2023-2

Read More

21 Sep

Changes in Canada’s international work permit system

'Canadian Prime Minister Justin Trudeau announced changes to the country’s international work permit system, aiming to reduce the number of immigrant workers in Canada.'

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps