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The Reserve Bank of India has decided to advance the variable rate repo auction aggregating ₹25,000 crore, scheduled for March 30, to March 26.
The move follows a review of the rapidly evolving financial conditions and takes into account the impact of disruptions caused by the Covid-19 outbreak.
Tenor increased
The central bank also increased the tenor of the auction to 12 days from eight days.
Furthermore, the RBI has decided to temporarily enhance liquidity available to standalone primary dealers (SPDs) under its standing liquidity facility (SLF) from ₹2,800 crore to ₹10,000 crore with immediate effect.
This will facilitate year-end liquidity management by SPDs. The enhanced facility will be available till April 17.
The RBI said there is no change in the three-day variable rate auction aggregating ₹25,000 crore scheduled for March 31.
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