10,142.15113.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

RBI enhances repo auction amount to Rs 50,000 crore from Rs 25,000 crore

Such enhancement is likely to cushion some of the impact of disruptions caused by Covid-19.

ETMarkets.com|
Last Updated: Mar 26, 2020, 11.59 AM IST
0Comments
RBI
The central bank said there will be no change in the auction scheduled for March 31, and all other details regarding the auction would remain the same.
Mumbai: The Reserve Bank of India (RBI) on Thursday enhanced its variable rate term repo auction to be held today to Rs 50,000 crore from Rs 25,000 crore.

Such enhancement is likely to cushion some of the impact of disruptions caused by Covid-19 for the financial sector as the nation has locked down for 21 days starting Wednesday.

The central bank said there will be no change in the auction scheduled for March 31, and all other details regarding the auction would remain the same.

On Tuesday, Prime Minister Narendra Modi announced a nationwide 21-day lock down in an attempt to slow down the spread of pandemic coronavirus in the country.

On Tuesday, RBI advanced its Rs 25,000 crore variable rate repo auction to March 26 from March 30 on a review of the rapidly evolving financial conditions.

This has been one of the many steps taken by the central bank to tide over a potential liquidity crisis.

On 6 March, the central bank had announced two variable rate term repo auctions of Rs 25,000 crore each to be conducted on March 30 and March 31 to address any additional demand for liquidity and to provide flexibility to the banking system in year-end liquidity management.

Also Read

RBI advances repo auction, enhances liquidity pool

RBI's 3-year repo auction sees hefty demand

More repo auctions to keep markets on even keel

Banks cold shoulder RBI's term reverse repo auction

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service