RBI has decided to conduct a special 14 day repo at 9 per cent per annum for a notified amount of Rs.20,000 crore today with a view to enabling banks to meet the liquidity  requirements of Mutual Funds. Details of the facility are being announced separately.

It may be recalled that the Annual Policy Statement for the Year 2008-09 and the subsequent First Quarter Review had reiterated that the Reserve Bank retained the option to conduct overnight or longer term repo/reverse repo under the LAF depending on market conditions and other relevant factors. In the past, the Reserve Bank had also conducted 7/14/28 day repos.

Alpana Killawala
Chief General Manager

Press Release: 2008-2009/484