INSUBCONTINENT EXCLUSIVE:
MUMBAI: The Reserve Bank of India has decided to revise its liquidity management through which it controls cash in the banking system, a key
framework, the central bank said Thursday as it kept the repo rate unchanged at 5.15 percent in its bi-monthly monetary policy.
The central
will use a combination of tools including fixed and variable rate repo/reverse repo auctions, open market operations, forex swaps as it may
If needed, RBI will conduct longer-term variable rate repo/reverse reop operations of more than 14 days
The weighted average call rate (WACR) will continue to be its operation target
dedicated working group on liquidity management.
On operational front, the central bank seeks to give more details on daily money market
operations.
A quantitative assessment of durable liquidity conditions of the banking system on a fortnightly basis would be published with a
lag of one fortnight, said RBI that will consult market participants and other stakeholders for the same.
Bond houses or primary dealers can
now participate directly in all overnight liquidity management operations.