The Reserve Bank of India has decided to conduct the variable rate Repo auctions as a preventive measure to bridge over any frictional liquidity requirements caused by COVID-19. As per the circular, the Reserve Bank of India will conduct fine-tuning variable rate Repo auctions for Rs 1,00,000 crores in two tranches.
The central bank has also decided to allow standalone Primary Dealers to participate in fine-tuning variable rate Repo auctions along with other eligible participants. All other terms and conditions which are applicable to term Repo auctions will remain the same.
Important takeaways for all competitive exams:
- RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.