G­-sec Acquisition Programme (G­SAP 2.0)

  • August 19, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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G­-sec Acquisition Programme (G­SAP 2.0)

Subject – Economy

Context – RBI to buy ₹25,000­cr. of bonds Aug. 26.

Concept –

  • The Reserve Bank of India (RBI) said it will conduct an open market purchase of government securities of ₹25,000 crore on August 26 under the G-sec Acquisition Programme (G-SAP 2.0).
  • The RBI periodically purchases Government bonds from the market through Open Market Operations (OMOs).
  • The G-SAP is in a way an OMO.
  • But there is an upfront commitment by the RBI to the markets that it will purchase bonds worth a specific amount.
  • The idea is to give a comfort to the bond markets.
  • In other words, G-SAP is an OMO with a ‘distinct character.’
economy G­-sec Acquisition Programme (G­SAP 2.0)