RBI's spl fixed rate term repo auction for Rs 55,255 cr

Mumbai,Nov 25 (UNI) 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 55,255 crore today, due for reversal on December 10.

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. Of the outstanding amount of Rs 4,945 crore as yesterday, Rs 200 crore is due for redemption today.

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.

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