The Reserve Bank of India (RBI) will conduct the first tranche of its long-term repo operations on February 17 with three-year repo of ₹25,000 crore, followed by another on February 24 for an equal amount.
On Thursday, the RBI had announced it will extend funds to banks at repo rate, which is 5.15%, a move aimed at lowering the cost of funds for banks, which the lenders can pass on to the customers.
The RBI plans to extend ₹1 lakh crore through this facility. The minimum bid amount would be ₹1 crore and multiples thereof. There will be no restriction on the maximum amount of bidding by individual bidders.
The RBI move is aimed at providing cheaper money to banks at the repo rate and, thus, improving liquidity in the banking system.
(With PTI inputs)
