25 C
Thursday, April 15, 2021

RBI to buy different maturity bonds under 1st quantitative easing plan

- Advertisement -

Commercial banks surpass target of agri credit in FY19: RBIMumbai, April 8 (IANS) The Reserve Bank of India will purchase government securities maturing between November 2023 and March 2035 under the quantitative easing programme announced by Governor Shaktikanta Das after the monetary policy committee (MPC) meeting on Wednesday.

In order to ensure stable and orderly evolution of the yield curve amidst comfortable liquidity conditions, the Reserve Bank of India pledged to buy up to Rs 1 lakh crore of bonds in April-June quarter to keep borrowing costs low and support the economy’s recovery.

As per the schedule, the debt purchases in the secondary market will start from April 15, with RBI purchasing an aggregate amount of Rs 25,000 crore under the secondary market G-sec acquisition programme or G-SAP 1.0

READ ALSO:  Tata Power to build 100 MW solar project in Gujarat

Under the programme, the RBI will purchase G-Secs through a multi-security auction using the multiple price method. The securities to be purchases in the first tranche include 4.48 per cent GS 2023, 5.15 per cent GS 2025, 6.79 per cent GS 2027, 5.85 per cent GS 2030 and 6.22 per cent GS 2035.

The Reserve Bank will decide on the quantum of purchase of individual securities and accept bids for less than the aggregate amount. It will also exercise the right to purchase marginally higher/lower than the aggregate amount due to rounding-off and also accept or reject any or all the bids either wholly or partially without assigning any reason.

READ ALSO:  Govt to allocate Rs 10,000 cr more for PM Garib Kalyan Rozgar Yojana
READ ALSO:  Overall credit growth continues to be muted: FinMin report

The result of the April 15 G-Sec auctions will be announced on the same day.

Source: IANS

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News


Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India