Government Securities Acquisition Programme (G-SAP)

• It is programme of RBI to infuse money to economy.
• Through the Government Securities Acquisition Programme (G-SAP), the Reserve Bank of India (RBI) will purchase government securities worth Rs 1 lakh crore in the first quarter of FY 2021-22.
• G-SAP is in a way an OMO but there is an upfront commitment by the RBI to the markets that it will purchase bonds worth a specific amount.
• G-SAP will help reduce the spread between repo rate and the yield on the 10-year GSec.
• It will also help to reduce aggregate cost of borrowing for the centre and states in fiscal year 2022.