The objective is to tide over any liquidity requirement on account of disruptions due to coronavirus pandemic.
As the virus cases climbed in India, the central and state governments have decided to completely lock down 80 districts in 17 states from where Covid-19 cases have been reported while the states can extend the list of districts as they deem fit. There are expectations that the shutdown will surely hit corporate earnings of India Inc.
“The Reserve Bank is monitoring the evolving financial market conditions. The Reserve Bank will calibrate its operations to meet any need for additional liquidity support, if warranted, to ensure normal functioning of markets, promote staff welfare and preserve financial stability,” the central bank said in release.
The apex bank added that standalone primary dealers will be allowed to participate in these auctions along with other eligible participants. All other terms and conditions as applicable to term repo auctions will remain the same.
