The RBI said that it will conduct seven-day and 14-day term repos on alternate Fridays starting this Friday
The Reserve Bank of India (RBI) on Tuesday said that banks cannot bid for term repos at or below the prevailing repo rate under liquidity adjustment facility (LAF). The repo rate currently stands at 7.5%.
The RBI said that it will conduct seven-day and 14-day term repos on alternate Fridays starting this Friday.
“It would conduct term repos will be for a total amount of 0.25% of Net Demand and Time Liabilities (NDTL) of the banking system,” the RBI added.
No bids would be accepted at or below the prevailing Repo Rate under LAF, RBI said in a notification.
Term Repo under the Liquidity Adjustment Facility (LAF) for 14 days and 7 days tenors will be introduced for banks (scheduled commercial banks other than RRBs) in addition to the existing daily LAF (repo and reverse repo) and MSF.
Term repo auctions will be conducted on CBS (E-KUBER) platform through electronic bidding as is done in the case of OMO auctions.
The central bank will arrange all bids in a descending order of the term repo rates quoted and the cut-off rate would be arrived at the rate corresponding to the notified amount of the auction. The notified amount would be announced one day prior to the auction each week, the notification showed.
The Reserve Bank of India (RBI) on Tuesday said that banks cannot bid for term repos at or below the prevailing repo rate under liquidity adjustment facility (LAF). The repo rate currently stands at 7.5%.
The RBI said that it will conduct seven-day and 14-day term repos on alternate Fridays starting this Friday.
“It would conduct term repos will be for a total amount of 0.25% of Net Demand and Time Liabilities (NDTL) of the banking system,” the RBI added.
No bids would be accepted at or below the prevailing Repo Rate under LAF, RBI said in a notification.
Term Repo under the Liquidity Adjustment Facility (LAF) for 14 days and 7 days tenors will be introduced for banks (scheduled commercial banks other than RRBs) in addition to the existing daily LAF (repo and reverse repo) and MSF.
Term repo auctions will be conducted on CBS (E-KUBER) platform through electronic bidding as is done in the case of OMO auctions.
The central bank will arrange all bids in a descending order of the term repo rates quoted and the cut-off rate would be arrived at the rate corresponding to the notified amount of the auction. The notified amount would be announced one day prior to the auction each week, the notification showed.
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