Image Source: Instagram
The Reserve Bank of India (RBI) has announced a two-day variable rate repo auction worth 500 billion rupees, scheduled to begin on January 28. The move is aimed at managing short-term liquidity in the banking system and ensuring stability in money markets.
Show more
The Reserve Bank of India has declared that it will conduct a two-day variable rate repo auction for 500 billion rupees starting January 28. This liquidity adjustment measure is part of the central bank’s ongoing efforts to balance cash flows in the financial system and maintain orderly market conditions.
Key Highlights
-
The auction size has been set at 500 billion rupees, reflecting the RBI’s proactive stance on liquidity management.
-
The two-day tenor provides banks with short-term funding flexibility, helping them meet immediate cash requirements.
-
Variable rate repo auctions allow market participants to bid competitively, ensuring efficient allocation of liquidity.
-
The announcement comes amid fluctuating money market rates, with the RBI stepping in to stabilize short-term borrowing costs.
-
Such measures are consistent with the RBI’s broader monetary policy framework, which seeks to balance inflation control with growth support.
Sources: Reuters, Reserve Bank of India
Stay Ahead – Explore Now!
Medico Remedies Secures ₹371.8 Million Order, Strengthening Pharma Growth Outlook
Advertisement
Advertisement