The Reserve Bank of India (RBI) announced another initiative to raise cash in the market on Monday. Under this, RBI has put 50 thousand crore rupees in the market under the term repo operation process. On Wednesday also, RBI will put the same amount in the market under this process. In its statement on Monday morning, RBI said that in order to meet the cash requirements of the market in the situation caused by the new coronavirus, RBI has decided to conduct a repo auction. This repo auction will be worth one lakh crore rupees and it will be done in two equal installments.
RBI will continue to take steps to meet the market’s cash needs
The duration of both auctions will be uniformly 16 days. Return dates for both installments will be April 8 and 9. RBI said that standalone primary dealers will also be able to participate in this auction along with qualified participants. The rest of the rules will remain the same. RBI will continue to take similar steps to meet the cash needs of the market.
On March 24 and 26, a total of 30 thousand crore government securities will also be purchased.
On March 16, RBI Governor Shaktikanta Das said that the Reserve Bank has decided to carry out more long term repo operations (LTRO). The RBI said that a total of one lakh crore rupees will be put into the market by the latest repo operation. In another step, RBI said on Monday that the second installment of the Open Market Operation (OMO) for the purchase of government securities worth Rs 15,000 crore will be executed on March 26 ahead of schedule. Earlier, a date was set for 30th. The process of first installment of 15 thousand crore rupees OMO will be completed on Tuesday 24 March.