RBI’s third tranche on June 17 to buy government securities in the open market

RBI to start buying government securities from June 17

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

Of this, the RBI said in a statement, State Development Loans (SDLs) will be procured up to Rs 10,000 crore.

Accordingly, the Reserve Bank will purchase Government securities and State Development Loans (SDLs) using the multi-price method through multi-security auction.

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

With the third tranche, RBI will meet the Rs 1 lakh crore target announced for G-SAP in the first quarter of 2021-22.

However, the Reserve Bank of India reserves the right to decide on the quantum of purchase of individual securities. Further, the Central Bank will use its discretion to accept bids for less than the aggregate amount and purchase marginally higher or lower than the total amount due to round-off.

RBI may accept or reject any or all bids in whole or in part without assigning any reason thereof, the statement said.

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