G-sec Acquisition Programme (GSAP 2.0)
- August 19, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
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.’