RBI To Provide Rs 1 Lakh Crore In March To Offset Cash Crisis

RBI is said to provide banks with Rs. 1 lakh crore in this month through longer tenure instruments for meeting the need of funds amid cash crunch towards the fiscal year end.

In a notification, the apex bank said it is, "prepared to inject adequate additional liquidity using a combination of appropriate instruments". The provision shall be in place over and above the normal course of Liquidity Adjustment Facility operations.

Further the notification of the bank says, "After reviewing the current and evolving liquidity conditions in the banking system, it has been decided to conduct additional variable rate repo operations for longer tenors to provide additional liquidity support to the banks during March 2018."

The central bank will engage in 4 variable rate term repo auctions valuing Rs 25,000 crore each in March 2018.

With PTI Inputs