{"id":127786,"date":"2021-08-21T18:44:01","date_gmt":"2021-08-21T13:14:01","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=127786"},"modified":"2021-08-22T08:35:34","modified_gmt":"2021-08-22T03:05:34","slug":"rbi-announces-open-market-purchase-under-g-sec-acquisition-programme-2-0","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-announces-open-market-purchase-under-g-sec-acquisition-programme-2-0\/","title":{"rendered":"RBI announces Open Market Purchase under G-sec Acquisition Programme 2.0"},"content":{"rendered":"

Source: <\/b>The Hindu<\/b><\/a><\/p>\n

What is the News?<\/b><\/h5>\n

Reserve Bank of India(RBI) has announced that it will conduct an open market purchase of government securities worth Rs 25,000 crore under the G-sec Acquisition Programme (G-SAP 2.0).<\/span><\/p>\n

About <\/b>G-Sec Acquisition Programme(G-SAP):<\/b><\/h5>\n
    \n
  1. G-Sec <\/b><\/a>Acquisition Programme(G-SAP) <\/b>is basically an unconditional and a structured <\/span>open market operation (OMO)<\/span><\/a>, of a much larger scale and size.<\/span><\/li>\n
  2. The word \u2018unconditional\u2019 here <\/b>connotes that RBI has committed up front that it will buy G-Secs irrespective of the market sentiment.<\/span><\/li>\n<\/ol>\n
    Aim of G-SAP:<\/b><\/h5>\n
      \n
    1. The aim of G-SAP <\/b>is to enable a stable and orderly evolution of the yield curve amidst comfortable liquidity conditions.\u00a0<\/span><\/li>\n<\/ol>\n
      Benefits of G-SAP:<\/b><\/h5>\n
        \n
      1. G-SAP<\/b> is expected to<\/span> bring down the cost of borrowings for the government<\/strong>. Further, it will counter the upward pressure on yields<\/strong> due to a higher government borrowing programme.<\/span>\n