G-SAP 2.0: RBI's Second Open Market Purchase Of Government Securities On July 22

The Reserve Bank of India (RBI) on Thursday, July 15, announced that it will conduct the second tranche of open market purchase of government securities (G-Secs) valued at ₹ 20,000 crore under the Government Securities Acquisition Programme (G-SAP 2.0) on July 22, 2021. The central bank conducted the first purchase (first tranche) of government securities for an aggregate amount of Rs 20,000 crore under G-SAP 2.0 on July 8, 2021. 

In its bi-monthly Monetary Policy Committee (MPC) statement led by RBI Governor Shaktikanata Das on June 4, the central bank had announced G-SAP 2.0 programme of Rs 1.2 lakh crore for the second quarter of the current fiscal year 2021-22. (Also Read: RBI Announces G-SAP 2.0 Of ₹ 1.2 Lakh Crore For 2nd Quarter Of Current Fiscal )

As part of the program, the RBI commits upfront to a specific amount of open market purchases of government securities to ensure a stable evolution of the yield curve and maintain comfortable liquidity conditions. 

On June 4, Shaktikanta Das announced that during the current year so far, the RBI has undertaken regular open market operations or OMOs and injected additional liquidity to the tune of Rs 36,545 crore, up to May 31, which is in addition to Rs 60,000 crore under the G-SAP 1.0 scheme.

In its first bi-monthly monetary policy committee meeting for fiscal 2021-22 held in April, the central bank had first announced the secondary market G-SAP 1.0 scheme. 

Also Read: RBI's Third Tranche Open Market Buy Of Government Securities On June 17

As part of G-SAP 1.0, the RBI purchased Rs 25,000 crore worth G-Secs on April 15 under the first tranche and Rs 35,000 crore worth securities under the second one. The third tranche of G-SAP 1.0 valued at Rs 40,000 crore was conducted on June 17, resulting in the RBI completing its target of Rs 1 lakh crore announced for the first quarter of fiscal 2021-22.