RBI to Conduct Additional Repo Operations to Provide Liquidity Support to Banks

According to the Reserve Bank of India it will conduct additional variable rate repo operations for longer tenors up to 31 days every Tuesday in the month of March 2018 for Rs 25,000 crore each to provide additional liquidity support to banks.

What this means is that the central bank is ready to provide liquidity aggregating Rs 1 lakh crore to the banking system in the current month. This move comes in the backdrop of a gradual tightening of liquidity in the banking system, which is facing a scenario whereby credit growth is outpacing deposit growth, and the approaching mid-March deadline for Indian Inc to make advance tax payments.

Source- The Hindu Businesss Line
Static/Current Takeaways Important for Exams-
  • Dr Urjit Patel is the 24th Governor of RBI.
  • RBI Headquarters in Mumbai.