RBI launches Second Tranche of Open Market Purchase: Government of India Securities under G-SAP 1.0

The Reserve Bank of India (RBI) will carry out the second tranche of open market purchase of government securities at 35,000 crore under the G-sec Acquisition Programme (G-SAP 1.0) on May 20, 2021. Hence, RBI will purchase the Government securities through a multi-security auction using the multiple price method.

The Reserve Bank coffers the right to decide on the quantum of purchase of entity securities, recognize bids for less than the cumulative amount, purchase marginally higher/lower than the aggregate amount owed to rounding-off, accept or reject any or all the bids either wholly or partially without conveying any reasons.

The first auction under G-SAP 1.0 conducted on April 15, 2021, for a recognized amount of 25,000 crores elicited an eager response, the RBI governor said. G-SAP has motivated a softening partiality in G-sec yields which has continued since then. Given this positive rejoinder commencing the market, it has been resolute that the second purchase of government securities for an amassed amount of 35,000 crores under G-SAP 1.0 will be conducted on May 20, 2021, he added.