RBI will buy government securities worth Rs 1.2 lakh crore between July-September 2021The Reserve Bank of India (RBI) will undertake an open market purchase of government securities or G-Secs worth Rs 1.2 lakh crore under the G-Sec acquisition programme during the July-September period.According to a statement issued by the Central bank, it will procure G-Secs through a multi-security auction and under the multiple price method. Subsequently, the first purchase of G-Secs for Rs 20,000 crore will be held on July 8, 2021.The Reserve Bank has stated that it reserves the right to decide on the quantum of purchase of individual securities and also to accept bids for less than the aggregate amount.It also reserves the right to purchase marginally higher or lower than the aggregate amount due to rounding-off and to accept or reject any or all the bids either wholly or partially without assigning any reasons.The Central bank will purchase government securities through a multi-security auction using the multiple price method. The eligible participants have been asked to submit their bids in electronic format on the RBI Core Banking Solution (E-Kuber) system between 10 am and 11 am on July 8, 2021.Physical bids would be accepted only in case of a system failure and these physical bids are to be submitted to the Financial Markets Operations Department of the RBI.The result of the auctions will be announced on the same day and successful participants should ensure the availability of securities in their SGL account by 12 noon on July 9, 2021.The RBI said the next purchase under the programme will be conducted on July 22 for Rs 20,000 crore.In April, RBI Governor Shaktikanta Das had said that the Central bank will conduct the open market purchase of government securities of Rs 1 lakh crore in the first quarter of the financial year 2021-22. The first auction of Rs 25,000 crore was held on April 15.
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