The Reserve Bank of India will buy bonds worth Rs 35,000 crore on May 20 in the second tranche of its G-Sec acquisition programme (G-SAP) which is designed to tame runaway bond yields .
Under the G-SAP, the central bank has committed to purchase bonds worth Rs 1 lakh crore in the first quarter ended June 30.
Last month, it conducted the first tranche under the bond buying programme for an aggregate amount of Rs 25,000 crore. RBI governor Shaktikanta Das said the first auction had seen yields soften.
Some measures were also announced to help state governments tide over a Covid-induced tight cash flow situation.
The RBI has granted states an overdraft facility for 50 days in a quarter from 36 days earlier.
States would be allowed to maintain a continuous overdraft for a period of 21 days instead of 14 days earlier.
