The Reserve Bank of India ( RBI) on Friday announced a host of measures aimed at boosting liquidity in the banking system in the backdrop of prevailing economic uncertainty due to coronavirus (COVID-19) outbreak.
The specific measures announced by Governor Shaktikanta Das are expected to infuse an additional ₹3,74,000 crore into the banking system as they take effect.
As part of the measures, Reserve Bank said it will conduct auctions of targeted term repos of up to three years tenor, for a total of up to ₹1 trillion, at a floating rate linked to the repo rate.
Liquidity availed under the scheme by banks will be deployed in investment grade corporate bonds, commercial paper, and non-convertible debentures over and above the outstanding