RBI resumes repo ops after 5 months as LTRO maturities lined up

The outflows in March coincide with the end of the financial year, which is typically a busy time for banks on the asset-liability management front

The Reserve Bank of India (RBI) on Thursday said it would conduct a 14-day variable rate repo auction worth Rs 50,000 crore on February 10. This will be the first repo auction by the central bank since September 22, 2022.

The reversal of the repo auction will take place on February 24, the RBI said in a press release.

When the central bank conducts repo operations such as 14-day repo auctions, it infuses short-term liquidity into the banking system.

Liquidity in the banking system is seen tightening in coming days due to the scheduled redemptions of large-scale long-term repo operations