Reserve Bank of India · · Revised 4 series
India Nov 9 four-day repo: central bank adds ₹50,003 crore as banks seek cash
The Reserve Bank of India (RBI) lent banks ₹50,003 crore through a four-day repo, a short-term loan secured by securities, on Nov 9. Banks bid ₹62,872 crore, so they still need cash from the central bank.
A data update from FactIQ, written from Reserve Bank of India figures. What is FactIQ?
Key figures
- Cash added through the four-day repo auction, Nov 9
- ₹50,003 croredown from ₹1,50,007 crore accepted on Oct 262014-07-142026-11-09Total amount of bids accepted for variable rate repo auctions with a four day period
- Value of bids received in the four-day repo auction, Nov 9
- ₹62,872 croreabout 1.26 times the amount accepted2014-07-142026-11-09Total amount of bids received for the four day variable rate repo auction under the liquidity adjustment facility for auction sequence one
- Bids received in the four-day repo auction, Nov 9
- 26all 26 accepted2014-07-142026-11-09Number of bids received for variable rate repo auctions with a four day period under the liquidity adjustment facility
Banks asked for more cash than the central bank supplied
The Reserve Bank of India (RBI), the country's central bank, held a four-day variable rate repo auction on Nov 9. In a repo, the central bank lends cash to banks for a short period against securities. A variable rate auction means banks bid the interest rate they will pay. The amount banks ask for shows how short of cash the banking system is. Amounts are in Indian rupees (₹) crore, the Indian unit used for large sums.
- Banks submitted 26 bids worth ₹62,872 crore.
- The RBI accepted all 26 bids and added ₹50,003 crore.
- Demand was about 1.26 times the amount accepted.
The Nov 9 operation was much smaller than the one on Oct 26
The RBI held a larger four-day repo on Oct 26.
- It accepted ₹1,50,007 crore against ₹1,86,666 crore bid.
- It accepted 67 of 78 bids.
On Nov 9, both the amount bid and the amount accepted were well below the Oct 26 levels.
Four-day repos have returned after a gap since June
Before Oct 26, the RBI's last four-day repo was on Jun 25. The Oct 26 and Nov 9 operations show the central bank adding cash in steps. Their return fits a tighter cash position in the banking system.
Source: Reserve Bank of India. See all RBI data in FactIQ.