MUMBAI: RBI Governor Shaktikanta Das on Thursday said the decision to conduct new one-year and three-year repos worth Rs 1 lakh crore, is aimed at ensuring better monetary policy transmission.
In the sixth bi-monthly policy, the Reserve Bank of India (RBI) announced term repurchase agreements (repos) of one-year and three-year tenors of appropriate sizes for a total amount of Rs 1 lakh crore at the policy repo rate, from the fortnight beginning on February 15.
"It is an effort to ensure better monetary policy transmission. It will enable banks to reduce their lending rates," Das told reporters in the post-policy conference. The RBI has cumulatively cut the repo rate by 135 basis since February 2019 to a nine-year low of 5.15 per cent.
He said monetary transmission across various money market segments and the private corporate bond market has been sizable.