The Reserve Bank of India is continuing to supply largeamounts of liquidity to the markets and the financialsystem as it tries to prevent a freeze in the creditmarkets, in the face of the coronavirus impact on the economy and financial system.
On Monday, the central bank said that it would offer Rs 1 lakh crore to banks via repooperations. Through the window, banks can borrow overnight funds at the reporate of 5.15% against collateral in the form of government securities.
Of the total amount, Rs 50,000 crore will be offered on Monday and another Rs 50,000 crore on Tuesday. So far, the RBI has not eased rules for collateral.
Indian benchmark bonds erased losses after the central bank announced the repoauction. 10-year yield fell to 6.26 percent from 6.31 percent earlier.
