1592899775_7Uxh1r_RBI_final.jpg
As announced in Governor’s statement of August 06, 2021, the Reserve Bank will conduct open market purchase of government securities of ₹25,000 crore on August 12, 2021 under the G-sec Acquisition Programme (G-SAP 2.0).
Photo Credit :
Reserve Bank of India (RBI) on Friday announced that under the G-sec Acquisition Programme (G-SAP 2.0), it is going to conduct two more auctions of Rs 25,000 crore each for open market purchase of government securities.
RBI Governor Shaktikanta Das while virtually addressing the Monetary Policy Committee meeting said that the fresh auctions would be conducted on August 13 and August 26.
RBI also stated, “As announced in Governor’s statement of August 06, 2021, the Reserve Bank will conduct open market purchase of government securities of ₹25,000 crore on August 12, 2021 under the G-sec Acquisition Programme (G-SAP 2.0).”
He further said that we are going to continue to undertake these auctions and few other operations like Open market operations (OMO) and operational twist is among them, and they are calibrated to meet changes in macro economic and financial conditions.
“The Reserve Bank 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,” RBI added in the statement.
Talking about participation and bidding, the RBI said, “Eligible participants should submit their bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on August 12, 2021. Only in the event of system failure, physical bids would be accepted. Such a physical bid should be submitted to the Financial Markets Operations Department in the prescribed form obtainable from RBI website before 11:00 am. 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 August 13, 2021.”
Meanwhile, amid the economic crisis, Reserve Bank of India Governor Shaktikanta Das on Friday during the Monetary Policy Committee (MPC) review meeting said that the central bank's MPC has left the repo rate unchanged at 4 per cent and reverse repo rate at 3.35 per cent.
In a press statement, RBI said, "Based on an assessment of the evolving domestic and global macroeconomic and financial conditions and the outlook, the MPC voted unanimously to keep the policy repo rate unchanged at 4 per cent. The MPC also decided on a 5 to 1 majority to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target, going forward. The marginal standing facility (MSF) rate and the bank rate remain unchanged at 4.25 per cent. The reverse repo rate also remains unchanged at 3.35 per cent.”