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Oil Bonds eligible collateral under LAF/MSF

Press Trust of India  |  Mumbai 

bonds issued by government will qualify as eligible securities for repos, reverse repos and Marginal Standing Facility (MSF), the Reserve Bank said today.

The E-Kuber system will now accept Bonds as eligible collateral for the such transactions, it added.

Further, the central bank said that it has been decided to do away with the margin requirement for the securities provided by RBI as collateral to the successful participants in reverse repo operations (including Term Reverse Repos).

"However, margin requirements shall continue as hitherto in respect of all Repo/MSF transactions. A margin of 4 per cent will be applied in respect of Bonds, i.E. A Repo bid of Rs 100 will have to be backed by Rs 104 of Oil Bonds," RBI added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 25 2016. 22:22 IST