RBI advances OMO date, announces repo of Rs 1 trn in two tranches

The central bank has announced a series of measures to tide over any liquidity issues caused by the Coronavirus dislocation in the markets

The Reserve Bank of India (RBI) stepped in on Monday to infuse more liquidity into the system by announcing term repo operations of Rs 1 trillion in two tranches, even as it advanced a secondary bond-buying plan scheduled next week.

The repo would take care of any frictional liquidity requirements of the banking system, the central bank said. But, at the same time, the central bank’s special swap operation to infuse dollar liquidity into the system saw tepid response. With $2 billion on offer, banks bid for only $1.53 billion, of which the central bank accepted bids for only $650 million. 

According