InvestorQ : What does it means when the RBI says it will conduct G-SAPs of Rs.40,000 crore in the coming week?
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What does it means when the RBI says it will conduct G-SAPs of Rs.40,000 crore in the coming week?

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swati Bakhda answered.
2 weeks ago
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You would recollect that in the June monetary policy, the RBI had committed to conduct the third tranche of its open market purchase of government securities or G-Secs as well as state development loans or SDLs. This is under G-SAP scheme on 17-Jun, which has been used by the RBI to infuse liquidity and also to tweak yields across different maturities of the government securities market to make the curve smooth.

G-SAP is actually an abbreviation for Government Securities Acquisition Program conducted by the RBI on behalf of the government of India. In this third G-SAP round, RBI will purchase government securities worth Rs.30,000 crore plus SDLs worth Rs.10,000 crore, making it Rs.40,000 crore in total. If you add the first two tranches on 15-Apr and 20-May by the RBI, tis will take the total G-SAP amount to the RBI Q1 target of Rs.100,000 crore.

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