The Reserve Bank of India will buy Rs 25,000 crore worth of government bonds under G-sec Acquisition Programme (G-SAP 2.0) on August 26, the central bank announced on August 18.
During the third bi-monthly monetary policy announcement earlier this month, RBI governor Shaktikanta Das had said the central bank will conduct two G-SAP auctions worth Rs 25,000 crore on August 12 and August 26 to enable an orderly evolution of the yield curve.
“We will continue to undertake these auctions and other operations like open market operations (OMOs) and operation twist (OT), among others, and calibrate them in line with the evolving macroeconomic and financial conditions,'' he added.
In the latest round of the GSAP auction on August 26, the central bank will buy five-year, six-year, eight-year, nine-year, and 14-year bonds.
RBI will purchase the following government securities through a multi-security auction using the multiple price method. (In a multiple price-auction, each successful bidder pays the price stated in his bid.)
Source: RBI statement“Eligible participants need to submit their bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10 am and 11 am on August 26, 2021,” the central bank said in a statement.
It added that physical bids would be accepted only in the event of system failure. They need to be submitted to Financial Markets Operations Department via email or phone no 022-22630982 before 11 am.
The result of the auctions will be announced on the same day and successful participants should ensure availability of securities in their SGL account by 12 noon on August 27.
(Edited by : Kanishka Sarkar)
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