Mumbai, Oct 23 (UNI) The Reserve Bank of India (RBI) will conduct a special fixed rate term repo at eight per cent per annum against eligible securities for Rs 11,450 crore, due for reversal on November six, with a view to enabling banks to meet the liquidity requirements of mutual funds.
It may be recalled that the Reserve Bank had earlier announced that it would conduct the special fixed rate term repo under liquidity adjustment facility every day until further notice up to a cumulative amount of Rs 20,000 crore for the same purpose, a RBI release said here today.
Banks have utilised Rs 8,550 crore of this facility till yesterday. In addition, in terms of further measures for improving domestic and foreign currency liquidity announced on October 15, banks may avail of additional liquidity support exclusively for the purpose of meeting the liquidity requirements of mutual funds to the extent of up to 0.5 per cent of their NDTL.
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