The Reserve Bank of India (RBI) will conduct the third tranche of open market purchase of government securities of Rs 40,000 crore under the G-sec Acquisition Programme (G-SAP 1.0) next week.
RBI stated that it will be held on June 17, 2021. This will be done electronically. Only in the event of system failure, physical bids would be accepted. Such a physical bid should be submitted to the Financial Markets Operations Department.
According to RBI, “Of this, state development loans (SDLs) would be purchased up to Rs 10,000 crore.” Accordingly, the Reserve Bank will purchase government securities and state development loans (SDLs) through a multi-security auction using the multiple price method.
The Reserve Bank reserves the right to decide on the quantum of purchase of individual securities; accept bids for less than the aggregate amount; purchase marginally higher/lower than the aggregate amount due to rounding-off; and accept or reject any or all the bids either wholly or partially without assigning any reasons.
The eligible participants should submit their bids in electronic format on the Reserve Bank of India Core Banking Solution system between 10 am and 11 am on June 17, 2021.
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