The Reserve Bank of India (RBI) on July 15 announced the second purchase of government bonds under the government securities acquisition programme 2.0 (G-SAP 2.0). This will be conducted for Rs 20,000 crore on July 22.
The result of the auctions will be announced on the same day and successful participants should ensure availability of securities in their SGL account by 12 noon on July 23, 2021, the RBI said.
Further, the RBI said it reserves the right to decide on the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher/lower than the aggregate amount due to rounding off and accept or reject any or all the bids either wholly or partially without assigning any reasons.
On July 5, the RBI had announced the first purchase of G-SAP 2.0 for Rs 20,000 crore. Announcing the plan, the RBI governor said on June 4 that another round of G-SAP 1.0 worth Rs 40,000 crore will be conducted on June 17. Additionally, Das announced G-SAP 2.0 plan in Q2.
In its April monetary policy review, the RBI had announced secondary market G-SAP 1.0. Under the programme, the central bank committed upfront to a specific amount of open market purchases of government securities with a view to enable a stable and orderly evolution of the yield curve amid comfortable liquidity conditions. It had planned a G-SAP of Rs 1 lakh crore for Q1 FY22.
