The Reserve Bank of India (RBI) with a view to enabling banks to meet the liquidity requirements of Mutual Funds (MFs) and Non-Banking Financial Companies (NBFCs) either on incremental or on rollover basis, shall conduct a special fixed rate term repo at 7.5% per annum against eligible securities for Rs.55,255 crore on 25 November 2008, due for reversal on 10 December 2008.
The RBI had announced on 14 October 2008 that it would conduct the special fixed rate term repo under Liquidity Adjustment Facility daily till end-March 2009 up to a cumulative amount of Rs.60,000 crore on outstanding basis and that additional liquidity support to the extent of up to 1.5% of their NDTL, can be availed by banks exclusively for the purpose of meeting requirements of MFs and NBFCs.Of the outstanding amount of Rs.4,945 crore as on 24 November 2008, Rs.200 crore is due for redemption today.
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