Reserve Bank of India says ready to inject more cash into banks at March-end

The Reserve Bank of India will be ready to inject adequate amount of extra cash into banks if needed ahead of March-end to give flexibility to lenders to manage their liquidity mismatches.

Published: 15th February 2018 04:38 PM  |   Last Updated: 15th February 2018 04:38 PM   |  A+A-

The logo of the Reserve Bank of India | Reuters Photo

By Reuters

MUMBAI: The Reserve Bank of India will be ready to inject adequate amount of extra cash into banks if needed ahead of March-end to give flexibility to lenders to manage their liquidity mismatches that typically happen at quarter-end, it said in a release on Thursday.

The Reserve Bank of India said it "stands ready" to provide additional cash "using a combination of appropriate instruments" without giving any further details on specific steps, to address any extra demand for liquidity due to advance tax payments and increase in withdrawal of cash from banks towards March-end.

The 10-year benchmark bond yield briefly eased by 1 basis point to 7.58 percent, but came back to 7.59 percent as hopes of open market purchases of bonds stayed feeble.

The RBI will also allow standalone primary dealers to avail term repo auctions on March 28, it said.

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