RBI to Make 2nd Purchase of G-Secs Worth Rs 35,000 Cr on May 20

RBI on Wednesday said the second purchase of government securities worth Rs 35,000 crore under the G-sec Acquisition Programme (G-SAP 1.0) will be done on May 20 for an orderly evolution of the yield curve as a fresh Covid-19 wave threatens to hit the economy.

The first purchase of Rs 25,000 crore last month received an enthusiastic response from the market, Reserve Bank of India (RBI) Governor Shaktikanta Das said while announcing a slew of measures to provide relief to various segments of the economy hit by the second wave of the pandemic.

To provide clarity on its bond-buying programme through open market operations (OMO), Das had announced Rs 1 lakh crore target for the first quarter under the new instrument called G-SAP 1.0.

On the rate of price rise, he said, food and fuel inflation have pushed core inflation.

The expected normal monsoon forecast should help contain food price inflation, he added. 

RBI Governor, in an unscheduled announcement, said the central bank will continue to monitor the situation from the resurgence of Covid-19 cases and deploy all resources.

"We have to marshal our resources for fighting the virus with vigour," he added.