• Reiterating the RBI’s commitment to maintaining the current accommodative policy stance until the economy is back on track, the Governor enthused the markets with a new programme — Government Securities Acquisition Programme (G-SAP) — through which it will purchase government securities worth Rs 1 lakh crore in the first quarter of FY22.

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• The RBI also announced that it will continue with a variable rate reverse repo to suck excess liquidity.
• While the 10-year G-Sec bond yields dropped 0.6% to 6.08 on Wednesday, the benchmark Sensex gained 0.9% to close at 49,661.7.
• G-SAP aims to provide more comfort to the bond market, market participants
• since liquidity is already in a large surplus, RBI will continue with variable rate reverse repos at the shorten
• Market participants say they have always wanted to know the RBI’s Open Market Operations (OMO) purchase calendar, and the RBI has now provided that to the market through this announcement on GSAP.