RBI to conduct spl fixed rate term repo auction

Mumbai, Nov 24: The Reserve Bank of India (RBI), shall conduct a special fixed rate term repo at 7.5 per cent per annum against eligible securities for Rs 55,055 crore on Monday, Nov 24, due for reversal on December eight.

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 as on November 21, stood at Rs 4,945 crore.

It may be recalled that, the RBI had announced earlier that it would conduct the special fixed rate term repo under Liquidity Adjustment Facility daily till end-March 2009 up to a cumulative amount of Rs 60,000 crore on outstanding basis 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, a release issued by RBI said.

UNI