As a pre-emptive measure to tide over any frictional liquidity requirements on account of dislocations due to COVID-19, the Reserve Bank of India has decided to conduct the following fine-tuning variable rate Repo auctions for Rs 1,00,000 crores in two tranches of Rs 50000 crore on March 23 and March 24 2020. As a special case, Standalone Primary Dealers will be allowed to participate in these auctions along with other eligible participants. All other terms and conditions as applicable to term Repo auctions will remain the same. The Reserve Bank is monitoring the evolving financial market conditions. The Reserve Bank will calibrate its operations to meet any need for additional liquidity support, if warranted, to ensure normal functioning of markets, promote staff welfare and preserve financial stability.
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