Mumbai, Oct 16 (UNI) Five banks today picked up Rs.2270 crore from the Reserve Bank of India under the special nine per cent repo to mitigate the liquidity crisis faced by Mutual Funds on redemptiond demands.
RBI had on october 14 commenced the special 15 day Liquidity Adjustment Facility (LAF)with a total offer of Rs.20,000 crore. The first day saw four banks bidding for Rs.3500 crore and yesterday only one Bank had sought Rs.200 crore.
RBI had stated that the auctions would continue till the Rs.20,000 crore facility was fully utilised on a cumulative basis.
Meanwhile, the 100 per cent basis points cut in Cash Reserve Ratio by the RBI yesterday saw the demand under LAF auctions by banks coming down drastically with only Rs.10,400 crore picked up by seven banks.
In the reverse repo (securities purchased by RBI) the Apex Bank accepted 11 bids for a total consideration of Rs.6250 crore.
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