RBI to conduct 14-day repo on Rs 20,000 cr

Mumbai, Oct 14: The Reserve Bank of India (RBI) will on Tuesday, Oct 14 conduct a special 14 day repo at nine per cent per annum for a notified amount of Rs 20,000 crore to enable banks meet the liquidity requirements of Mutual Funds.

The special repo is in tune with the 2008-09 annual policy statement of the Apex Bank, in which it stated that RBI retained the option to conduct overnight or longer term repo/reverse repo under the Liquidity Adjustment Facility (LAF) depending on market conditions and other relevant factors.

In the past, the Reserve Bank had also conducted 7/14/28 day repos.

UNI