RBI asks banks to have enough collateral for repo borrowing
The Reserve Bank of India asked banks to ensure that they had sufficient collateral securities in their accounts before submitting bids to borrow under the repo window.
July 16, 2013 / 23:32 IST
The Reserve Bank of India on Tuesday asked banks to ensure that they have sufficient collateral securities in their accounts before submitting bids to borrow under the repo window.
The RBI had announced late on Monday that it will cap the extent to which banks can borrow money from the RBI at Rs 750 billion, effective Wednesday, as a step to boost rupee demand and stem the currency's decline.Also read: RBI opens new attack to clamp rupee free fallThe RBI also said the cap of Rs 750 billion will be applicable to the combined amount in morning and evening repo auctions on reporting Fridays.If the allotted amount in the morning repo is Rs 750 billion, there will be no evening repo on reporting Fridays, it added. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
