Social News XYZ     

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

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

Mumbai, April 8 (SocialNews.XYZ) 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

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.

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

Source: IANS

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

About Gopi

Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.

He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.

When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.

He can be reached at gopi@socialnews.xyz

%d bloggers like this: