RBI Moves To Provide Liquidity To Market Players
Money & Banking
With the financial markets going into a tailspin due to the Covid-19 outbreak, the Reserve Bank of India (RBI) has decided to conduct “fine-tuning” variable rate 16-day term repo auctions of ₹50,000 crore each on March 23 and March 24.
Simultaneously, the central bank also brought forward the ₹30,000-crore open market operation (OMO) purchase auction to March 26 from March 30.
The RBI, in a statement, said: “As a pre-emptive measure to tide over any frictional liquidity requirements on account of dislocations due to Covid-19, the Reserve Bank of India has decided to conduct the following fine-tuning variable rate repo auctions for ₹1 lakh crore.”
As a special case, the RBI said standalone primary dealers will be allowed to participate in the variable rate term repo auctions along with other eligible participants. The RBI provides liquidity to market players via these auctions.
Monitoring markets
The RBI said it is monitoring the evolving financial market conditions. The central bank observed that it will calibrate its operations to meet any need for additional liquidity support, if warranted, to ensure normal functioning of markets, promote staff welfare and preserve financial stability.
Published on
March 23, 2020
With the financial markets going into a tailspin due to the Covid-19 outbreak, the Reserve Bank of India (RBI) has decided to conduct “fine-tuning” variable rate 16-day term repo auctions of ₹50,000 crore each on March 23 and March 24.
Simultaneously, the central bank also brought forward the ₹30,000-crore open market operation (OMO) purchase auction to March 26 from March 30.
The RBI, in a statement, said: “As a pre-emptive measure to tide over any frictional liquidity requirements on account of dislocations due to Covid-19, the Reserve Bank of India has decided to conduct the following fine-tuning variable rate repo auctions for ₹1 lakh crore.”
As a special case, the RBI said standalone primary dealers will be allowed to participate in the variable rate term repo auctions along with other eligible participants. The RBI provides liquidity to market players via these auctions.
Monitoring markets
The RBI said it is monitoring the evolving financial market conditions. The central bank observed that it will calibrate its operations to meet any need for additional liquidity support, if warranted, to ensure normal functioning of markets, promote staff welfare and preserve financial stability.
Published on
USAA To Expand Workforce In Chesapeake To Support Growing Membership
Company adding more than 500 employees in the area over the next two years Read more
USAA Advocates For Safe Driving Habits During 100 Deadliest Days Of Summer For Teens
New Safe Driving Simulator virtual experience helps drivers identify bad habits ahead of summer travels Read more
USAAs Poppy Wall Of Honor® Returns To National Mall For Sixth Year To Honor And Remember Fallen Service Members
Enhanced experience provides immersive storytelling to illustrate all that was given in service to our country Read more
USAA Appoints Brian Goldman As Chief Risk Officer
USAA announced today the appointment of Brian Goldman as its new Chief Risk Officer, effective May 27. Read more
Strong Financial Performance Reflects USAAs Unwavering Commitment To Members And The Military Community
Association added 1 million new members and continued to serve the military community and their families through enhance... Read more
USAA And The Valero Texas Open Join Forces To Honor Military Heroes
Service Members and Veterans to Receive Exclusive Benefits and Complimentary Access Read more