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RBI’s Third Tranche Open Market Buy Of Government Securities On June 17



RBI will begin purchase of government securities on June 17

The Reserve Bank of India (RBI) on Thursday said that it will conduct the third tranche of open market purchase of government securities (G-Secs) valued at Rs 40,000 crore under its G-Sec Acquisition Programme (G-SAP 1.0) on June 17.

Out of this, the RBI said in a statement, state development loans (SDLs) would be purchased for up to Rs 10,000 crore.

Accordingly, the Reserve Bank will purchase government securities and state development loans (SDLs) through a multi-security auction using the multiple price method. 

Under the second tranche, the RBI had purchased Rs 35,000 crore worth G-Secs under the G-SAP 1.0 on May 20 and purchased Rs 25,000 crore worth G-Secs under first tranche on April 15.

With the third tranche, the RBI will complete the Rs one lakh crore target announced for G-SAP in the first quarter of 2021-22.

RBI however reserves the right to decide on the quantum of purchase of individual securities. Also the central bank will use its discretion to accept bids for less than the aggregate amount and purchase marginally higher or lower than the aggregate amount due to rounding-off.

It can also accept or reject any or all the bids either wholly or partially without assigning any reasons, the statement issued by RBI said.

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