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Regular-article-logo Tuesday, 05 November 2024

Mutual funds get Rs 2,000 crore

The RBI had on Monday itself announced the Rs 50,000 crore liquidity facility targeted at the mutual funds industry

Our Special Correspondent Mumbai Published 28.04.20, 07:38 PM
Data released by the central bank on Tuesday showed that banks raised this amount on Monday.

Data released by the central bank on Tuesday showed that banks raised this amount on Monday. Telegraph file picture

Banks have borrowed Rs 2,000 crore from the Reserve Bank of India (RBI) on the first day under the special liquidity facility opened for mutual funds.

Data released by the central bank on Tuesday showed that banks raised this amount on Monday.

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The RBI had on Monday itself announced the Rs 50,000 crore liquidity facility targeted at the mutual funds industry, which have been facing redemption pressures.

Meanwhile, the apex bank received a good response to its “Operation Twist’’, where it sold short duration instruments and purchased long dated securities.

In the auction conducted on Monday, the central bank received Rs 64,746 crore worth of bids, or more than six times the amount it proposed, to buy government bonds through the special open market operation (OMO).

On the other hand, in the OMO sale auction, the RBI received Rs 50,260 crore of bids for four securities.

Last week, the RBI had announced simultaneous purchase as well as sale of government securities under OMO of Rs 10,000 crore each.

The RBI bought four securities — 7.59 per cent-2026, 7.17 per cent-2028, 7.26 per cent-2029 and 7.61 per cent-2030 — in the OMO purchase auction.

The central bank received 141 bids for 7.26 per cent-2029 security but accepted only 12 bids in the purchase auction.

It had also announced to sell 77-day and 84-day cash management bills and two treasury bills of 182-days and 364-days. The RBI received 22 bids for 182-day treasury bills but accepted four bids in the sale auction.

The RBI did a similar action in December last year when, it had announced the purchase of bonds maturing in 2029 and the sale of short-term bonds.

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