GS PAPER III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Context: G-SAP launched with aim to provide more comfort to the bond market, market participants.

About GSAP 1.0

• The first purchase of government securities worth ₹25,000 crore under the G-sec Acquisition Programme (G-SAP 1.0) will be done on April 15 with a view to enable a stable and orderly evolution of the yield curve.
• Under the programme, which will be for 2021-22, the RBI will commit "upfront to a specific amount of open market purchases of government securities with a view to enabling a stable and orderly evolution of the yield curve amidst comfortable liquidity conditions.
• G-SAP will run alongside RBI's regular operations, including Liquidity Adjustment Facility (LAF), open market operations (OMOs) and Operation Twist, the programme is built into the central bank's liquidity planning framework for 2021-22 as a whole.
• The positive externalities of G-SAP 1.0 operations need to be seen in the context of those segments of the financial markets that rely on the G-Sec yield curve as a pricing benchmark.

https://indianexpress.com/article/explained/g-sap-rbi-market-7263221/

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