RBI tweaks rules for reverse repo operations
Mumbai: India’s central bank said on Thursday it would allow market participants to “re-repo”, or to lend out, securities received under its reverse repo operations starting 26 November, the latest in a push to deepen fixed income markets.
The Reserve Bank of India also said it would allow participants to reflect the market value of collateral securities when utilising the central bank’s repo and reverse repo operations.
The central bank has announced a series of measures to develop fixed income markets, including moving to enable banks to pledge corporate bonds as collateral when borrowing funds from its overnight repo window. Reuters