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RBI ready to inject additional liquidity into banks by March end

The RBI will also allow standalone primary dealers to avail term repo auctions on March 28,

Reuters  |  Mumbai 

RBI, Reserve Bank of India

The will be ready to inject adequate amount of extra cash into if needed ahead of March-end to give flexibility to lenders to manage their liquidity mismatches that typically happen at quarter-end, it said in a release on Thursday.

The said it "stands ready" to provide additional cash "using a combination of appropriate instruments" without giving any further details on specific steps, to address any extra demand for liquidity due to advance payments and increase in withdrawal of cash from towards March-end.

The 10-year benchmark bond yield briefly eased by 1 basis point to 7.58 per cent, but came back to 7.59 percent as hopes of open market purchases of bonds stayed feeble.

The RBI will also allow standalone primary dealers to avail term auctions on March 28, it said.

First Published: Thu, February 15 2018. 16:46 IST
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