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The Reserve Bank of India (RBI) has announced a host of liquidity boosting measures. RBI will infuse liquidity for an amount of about Rs 40,000 crore on Friday through 14 day term repo variable rate auction.
The reversal of the 14 day term repo will take place on April 4. Further, in order to facilitate smooth and non-disruptive conduct of banking operations during the annual closing of accounts for the financial year 2013-14, RBI has decided to conduct a 5 day term repo variable rate auction for a notified amount of Rs 20,000 crore on March 28 with reversal on April 2.
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“As a one-time measure, standalone primary dealers will be allowed to participate in the auction to be conducted on March 28 within the notified amount of Rs 20,000 crore,” said RBI.
RBI has also decided to offer funds to the banks through the Marginal Standing Facility (MSF) on March 31 with reversal on April 2. “ The MSF window will remain open between 5.00 and 5.30 pm on March 31,” said RBI.
Besides that RBI also announced repurchase auction of government securities upto Rs 5,000 crore. The announcement was made for seven securities. “The repurchase by the Government of India will be undertaken to prematurely redeem the government stocks by utilising its surplus cash balances,” said RBI.
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