RBI Announces 30-Day Reverse Repo Auction
The Reserve Bank of India plans a 30-day reverse repo auction to absorb record banking liquidity. The move offers an early exit option to encourage participation from banks.
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India's central bank launched a 30-day variable rate reverse repo auction worth 7 trillion rupees ($74.09 billion) on Friday, featuring an early redemption option. The move targets a banking system liquidity surplus that swelled to a record 10.3 trillion rupees on September 3. Surging liquidity was driven largely by foreign-currency deposits raised under a special central bank scheme and subsequently swapped.
