RBI to hold Spl Fixed Rate Term Repo auction for Rs 52,240 cr

Mumbai, Nov 4 (UNI) The Reserve Bank of India (RBI) will conduct a special fixed rate term repo at 7.5 per cent per annum against eligible securities for Rs 52,240 crore today, due for reversal on November 18, with a view to enabling banks to meet the liquidity requirements of Mutual Funds(MFs) and Non-Banking Financial Companies (NBFCs) either on incremental or on rollover basis.

The outstanding amount under this facility stood at Rs 7,760 crore yesterday, a RBI release said here.

It may be recalled that the Reserve Bank of India had announced earlier that it would conduct the special fixed rate term repo under Liquidity Adjustment Facility (LAF) every day until further notice up to a cumulative amount of Rs 60,000 crore and that additional liquidity support to the extent of up to 1.5 per cent of their NDTL, can be availed by banks exclusively for the purpose of meeting requirements of MFs and NBFCs.

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