Rs 11.1 trillion: Amount RBI pumped into banking system to boost liquidity

It pared repo rate by 40 bps on May 22, on top of a 75 bps cut on March 27, brought liquidity enhancing steps that stabilised bond yields even in the face of a Rs 12 trn borrowing programme

Measures taken by the Reserve Bank of India during the Covid crisis were driven by the need to expand liquidity in the system sizeably, in order to ensure that financial markets and institutions function normally in the face of Covid-related dislocations, consistent with the monetary policy stance.

The liquidity measures were taken as per the revised liquidity management framework introduced on February 14, this year. The central bank reduced the policy repo rate by 40 bps on May 22, on top of a 75 bps reduction on March 27, and introduced a number of liquidity enhancing initiatives that stabilised the