What does it means when the RBI says it will conduct G-SAPs of Rs.40,000 crore in the coming week?

You would recollect that in the June monetary policy, the RBI had committed to conduct the third tranche of its open market purchase of government securities or G-Secs as well as state development loans or SDLs. This is under G-SAP scheme on 17-Jun, which has been used by the RBI to infuse liquidity and also to tweak yields across different maturities of the government securities market to make the curve smooth.

G-SAP is actually an abbreviation for Government Securities Acquisition Program conducted by the RBI on behalf of the government of India. In this third G-SAP round, RBI will purchase government securities worth Rs.30,000 crore plus SDLs worth Rs.10,000 crore, making it Rs.40,000 crore in total. If you add the first two tranches on 15-Apr and 20-May by the RBI, tis will take the total G-SAP amount to the RBI Q1 target of Rs.100,000 crore.