RBI to conduct special repo auctions
RBI to conduct a 14-day term special repo auction for `40,000 crore on Friday
Mumbai: The Reserve Bank of India (RBI) on Thursday said it will conduct a 14-day term special repo auction for ₹ 40,000 crore on Friday.
Additionally, on the last closing day of the banking financial year on 28 March, the central bank will conduct a five-day ₹ 20,000 crore repo auction “in order to facilitate smooth and non-disruptive conduct of banking operations during the annual closing of accounts for the financial year 2013-14".
Banks borrow from RBI through repo in exchange for government securities.
“As a one-time measure, standalone primary dealers will be allowed to participate in the auction to be conducted on 28 March 2014 within the notified amount of ₹ 20,000 crore," RBI said.
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