In order to meet any additional/ unforeseen demand for liquidity and to provide flexibility to the banking system in year-end liquidity management, the Reserve Bank of India has decided to conduct the following fine-tuning variable rate repo auctions:

2. 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.

3. Furthermore, it has been decided as a one-time measure not to conduct any variable rate reverse repo auction for the fortnight beginning March 26, 2021 in order to ensure the availability of ample liquidity to manage year-end requirements. The next variable rate reverse repo auction will be held on the next reporting Friday, i.e., on April 9, 2021.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2020-2021/1300