RBI to conduct term 13-day repo auction on Friday
The auctions have been announced following 'assessment of the prevailing liquidity conditions', RBI said
Mumbai: The Reserve Bank of India (RBI) will conduct a 13-day term repo auction of ₹ 60,000 crore and a three-day additional repo auction of ₹ 20,000 crore on Friday, the central bank said on its website. The auctions have been announced following “assessment of the prevailing liquidity conditions," RBI said.
In its monetary policy announcement on Tuesday, the RBI had hiked the cap for long-term repo of 7 and 14 days to 0.75% of banking deposits from 0.50% of deposits earlier.
Simultaneously, RBI curtailed the amount of money banks could get through overnight repo to 0.25% of bank deposits from 0.50% earlier, in line with the Urjit Patel committee report that recommended “de-emphasizing overnight guaranteed access windows for banks’ liquidity management."
“The primary objective is to improve transmission of policy impulses across the interest rate spectrum," RBI had said.
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