RBI asks banks to have enough collateral for repo borrowing

Posted By: Religare
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RBI asks banks to have enough collateral for repo borrowing
The Reserve of India has asked banks to make sure that they have sufficient collateral securities in their accounts before submitting bids to borrow under the repo window.

The regulatory body on Monday said that in order to boost rupee and stem the currency decline, it will cap the extent to which banks can borrow money from the RBI at Rs 75,000 crore, effective from Wednesday.

The RBI also said the cap of Rs 75,000 crore will be applicable to the combined amount in morning and evening repo auctions on reporting Friday.

If the allotted amount in the morning repo is Rs 75,000 crore, there will be no evening repo on reporting Friday, it added.

Read more about: rbi, banks, repo, borrowing
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