RBI to conduct Rs 600 bn special repo auction today

The Reserve Bank of India (RBI) will be conducting a special fixed rate term repo auction at 4.75% per annum (p.a.) against eligible securities for Rs 600 billion on Monday, Sep. 7, 2009.

The move will provide liquidity to mutual funds (MF), non-banking financial companies (NBFC) and housing finance companies (HFC) either on incremental or on rollover basis.

The reversal of the auction will take place on Sep. 22, 2009. There is no amount outstanding under this facility as on Aug. 31, 2009.

The apex bank had increased the daily liquidity adjustment facility (LAF) till Mar. 31, 2010 up to a cumulative amount of Rs 600 billion on outstanding basis exclusively for the purpose of meeting requirements of MFs, NBFCs and HFCs.