Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday spoke about the likelihood of India’s forex reserves crossing the record level of 600 billion USD on the back of robust capital flows.

According to the data issued by RBI on May 28, the country's foreign exchange reserves boosted by gold and currency assets have raised by 2.865 billion USD to a record high of 592.894 billion USD for the week ended May 21. During the announcement of the bi-monthly monetary policy review, Das stated that based on the current estimation, it is very likely that the forex reserves may have crossed USD 600 billion. To boost liquidity, RBI had announced several steps, including a special liquidity facility for various sectors impacted by the Covid-19 pandemic. RBI had also announced its G-sec Acquisition Programme (G-SAP) 2.0 which is aimed to provide help in calming yields and control undue volatility faced by market participants in the government securities market.

During the second quarter of the current fiscal, the RBI announced purchasing of ₹1.20 lakh crore of G-sec from the secondary market, as a part of G-SAP 2.0. According to him, RBI will buy ₹40,000 crores of government securities on June 17, and the remaining schedule will be announced later.