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The Reserve Bank of India (RBI) said on Friday that another round of Government Securities Acquisition Programme (G-SAP 1.0) worth Rs 40,000 crore will be conducted on June 17.Of this, Rs 10,000 crore will constitute the purchase of state development loans.Additionally, said RBI Governor Shaktikanta Das, G-SAP 2.0 of Rs 1.2 lakh crore will be conducted in Q2 FY22. "We do expect the market to respond appropriately to this announcement of G-SAP 2.0."The specific dates and securities under G-SAP 2.0 operations will be indicated separately.In April, the RBI had announced secondary market G-SAP 1.0. Under the programme, the central bank committed upfront to a specific amount of open market purchases of government securities to enable a stable and orderly evolution of the yield curve amid comfortable liquidity conditions.It had planned a G-SAP of Rs 1 lakh crore for Q1 FY22."The auctions under G-SAP 1.0 have evoked keen interest from market participants, with bid cover ratios of 4.1 and 3.5, respectively, in the two auctions undertaken so far," said Das."The timing of second auction was aimed towards replenishing drainage of liquidity due to restoration of cash reserve ratio (CRR) to its pre-pandemic level of 4 per cent of net demand and time liabilities effective May 22," said Das.With the second wave intensifying this financial year, the RBI's focus Bank is increasingly turning from systemic liquidity to its equitable distribution, he added.In fact, said Das, the enduring lesson from experience of pandemic in Indian context has been deployment of unconventional monetary policy measures that distribute liquidity among all stakeholders."We will continue with our proactive and pre-emptive approach, relying on market-based channels of transmission as we strive to mitigate the toll of pandemic and return the economy to a path of high and durable growth."( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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