Mumbai: The Reserve Bank of India will conduct a special repo auction for Rs600 billion on Monday and the reversal of the auction will be on 6 October, it said in a statement.
The special repo facility on a daily basis was introduced on 14 October 2008, offering Rs200 billion to meet liquidity needs of mutual funds.
The central bank later increased the facility to Rs600 billion to include liquidity needs of non-banking financial companies and housing finance companies.
At its policy review on 21 April, the central bank said the auction will be conducted on a weekly basis every Monday till March 2010.