RBI to conduct open market purchase of Government Securities under G-SAP 2.0

RBI policy: Liquidity management in focus
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RBI policy: Liquidity management in focus

Highlights

Reserve Bank of India (RBI) will conduct an open market purchase of Government Securities under the G-Sec Acquisition Programme (G-SAP 2.0) for an aggregate amount of Rs 15,000 crore on September 23, 2021

Reserve Bank of India (RBI) will conduct an open market purchase of Government Securities under the G-Sec Acquisition Programme (G-SAP 2.0) for an aggregate amount of Rs 15,000 crore on September 23, 2021.

The RBI Governor Shaktikanta Das on June 4 this year, had announced that the Reserve Bank will conduct an open market purchase of government securities under the G-sec Acquisition Programme (G-SAP 2.0) for an aggregate amount of Rs 15,000 crore on September 23, 2021.

In the fresh auction, the Reserve Bank will purchase the following Government securities through a multi-security auction using the multiple price method. The purchase will be of securities maturing on January 8, 2028, July 12, 2031, and June 16, 2035. The coupon rate of the securities will vary from 6.10 per cent to 7.15 per cent.

Simultaneously, the bank will also sale Government Securities under Open Market Operations (OMO) for an aggregate amount of Rs 15,000 crore on the same day. Accordingly, the Reserve Bank will sell the following Government securities through a multi-security auction using the multiple price method. The purchase will be of securities maturing on June 11, 2022, August 2, 2022, and September 21, 2022. The coupon rate of the securities will vary from 8.08 per cent to 8.15 per cent.

In the notification RBI said, the Reserve Bank reserves the right to decide on the quantum of purchase/sale of individual securities, accept bids/offers for less than the aggregate amount, purchase/sell marginally higher/lower than the aggregate amount due to rounding-off and accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.

RBI has asked eligible participants to submit their bids/offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.00 a.m. and 11.00 a.m. on September 23, 2021. The result of the auctions will be announced on the same day and successful participants should ensure availability of funds/securities in their Current account/SGL account, as the case may be, by noon on September 24, 2021.

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