RBI offers Rs60,000 crore at special repo

The Reserve Bank of India (RBI) has conducted a special repo auction for Rs60,000 crore today and the reversal of the auction is slated for 6 October, RBI said in a statement.

The fixed rate term repo was conducted at 4.75 per cent per annum against eligible securities for Rs60,000 crore, with a view to enabling banks to meet the liquidity requirements of mutual funds (MFs), non-banking financial companies (NBFCs) and housing finance companies (HFCs) either on incremental or on rollover basis, RBI said in a release.

There is no amount outstanding under this facility as of 14 September 2009, it added.
 
The special fixed rate term repo under Liquidity Adjustment Facility is available till 31 March 2010 up to a cumulative amount of Rs60,000 crore on outstanding basis to banks exclusively for the purpose of meeting requirements of MFs, NBFCs and HFCs.

The special repo facility on a daily basis was introduced on 14 October 2008, offering Rs200 billion to meet liquidity needs of mutual funds.

The RBI will also purchase dated government securities for an aggregate amount of Rs6,000 crore through multi-security auction using the multiple price method on 24 September 2009 (Thursday). The settlement would be on 25 September 2009 (Friday), a release said.