Government Securities Acquisition Programme (G-SAP) 2.0 will be taken in the second quarter of 2021-22 worth Rs 1.2 lakh crore to support the market, Reserve Bank of India (RBI) governor Shaktikanta Das said while making monetary policy announcements on Friday.
Das further said that the remaining Rs 40,000 crore of GSAP 1.0 will be conducted on June 27.
"Of this, Rs 10,000 crore would constitute the purchase of state development loans (SDLs)," he said.
Das added that the auctions under G-SAP 1.0 have evoked keen interest from market participants, with bid cover ratios of 4.1 and 3.5, respectively, in the two auctions undertaken so far.
"The timing of the second auction was aimed towards replenishing the drainage of liquidity due to the restoration of the cash reserve ratio (CRR) to its pre-pandemic level of 4 percent of net demand and time liabilities (NDTL), effective May 22, 2021," he added.
The Monetary Policy Committee (MPC) of the Reserve Bank of India, meanwhile, kept the repo rate unchanged at 4 percent for the sixth consecutive policy, while maintaining an accommodative stance amid uncertainty about the economic fallout of the second COVID-19 wave and rising inflation.
The reverse repo rate also was kept unchanged at 3.35 percent
Source: CNBCTV18 | Jun 07, 2021