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 And U.S.VETS Expand Effort To Prevent Veteran Homelessness Before It Starts
New Financial Resiliency Program Combines Housing, Coaching and Financial Services to Help 50,000 Veterans Build Lasting... Read more
USAA Bank Launches New Rewards Credit Cards, Delivering Higher Value For Everyday Spending
New survey data shows consumers increasingly rely on rewards to offset everyday expenses, from groceries to gas Read more
USAA Names Mara Motherway Senior Vice President And Head Of Government Relations
Jul 09 2026 SAN ANTONIO — July 9, 2026 — USAA today announced the appointment of Mara Moth... Read more
USAA And Wounded Warrior Project Launch $5 Million Initiative To Help Veterans Build Financial Security During The Transition To Civilian Life
Warrior Secure Start is a purpose-built program that combines financial education, personalized coaching and empowerment... Read more
USAA To Honor Those Who Made 250 Years Of Freedom Possible
Through partnerships, events and community engagements, USAA will celebrate the service members whose sacrifices helped ... Read more
USAA Introduces Smoky: A K9 Ambassador Rooted In Military Heritage And Well-being
Company launches first-ever Chief Pawsitivity Officer and announces $60,000 grant to K9s For Warriors to support veteran... Read more