RBI stepped up Government Security buys in the last 2 weeks: Current Affairs Special Series

Team Adda247 and BankersAdda are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is RBI stepped up Government Security buys in the last 2 weeks.

RBI stepped up Government Security buys in the last 2 weeks

The central bank of India, RBI has stepped up sovereign bond purchases in the past two weeks for helping lower borrowing costs, signaling its commitment to go beyond announced plans as growth revival temporarily upstage inflation management.

The central bank has purchased net Rs.34, 175 crores of sovereign papers from the secondary market from April 22 to May 4 to ensure lower borrowings costs amid concerns that the second Covid wave would divert the emerging economic recovery. Market experts believed that this could well be a record for a two-week period. The effort of RBI which is silently driving efforts to arrest the rise in yields is good when our economy is battling to limit the cost of a second wave. These unusual tools like OMO (Open Market Operations) or GSAPs (G-Secs Acquisition Programme) are fine, such as secondary market purchase should help balance the funding costs- in line with the record low-rate regime. G-Secs Acquisition Programme (GSAP) and open-market operations (OMO) are the influencing tools of the central bank.  

According to Government’s principal money manager, they have bought both Treasury Bills (T-Bills) and long-term papers in seven tranches. RBI is continuously trying to keep the benchmark gauge around 6% but the yield fell three basis points to 6.02% between April 22 and May 4, then RBI has canceled auctions worth Rs.39, 000 crores, and these included benchmark papers worth Rs.28, 000 crores and the rest from a five-year series.

In this financial year, RBI purchased Rs. 32, 220 crores via Open Market Operations while it infused Rs.25, 000 crores of liquidity via GSAP. The Banking System has a net durable surplus of Rs.7.26 lakh crore with the supply of securities increasing. Government plans to borrow Rs.12.05 lakh crore this fiscal year. 

Download Upcoming Government Exam Calendar 2021

×

Download success!

Thanks for downloading the guide. For similar guides, free study material, quizzes, videos and job alerts you can download the Adda247 app from play store.

Thank You, Your details have been submitted we will get back to you.
Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizes
  • Subject-Wise Quizes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Login

OR

Forgot Password?

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizes
  • Subject-Wise Quizes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Sign Up

OR
Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizes
  • Subject-Wise Quizes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Forgot Password

Enter the email address associated with your account, and we'll email you an OTP to verify it's you.


Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizes
  • Subject-Wise Quizes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to
/6


Did not recive OTP?

Resend in 60s

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizes
  • Subject-Wise Quizes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Change Password



Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizes
  • Subject-Wise Quizes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Almost there

Please enter your phone no. to proceed
+91

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizes
  • Subject-Wise Quizes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to Edit Number


Did not recive OTP?

Resend 60

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?