The Reserve Bank of India (RBI) today announced it would carry out long-term repo operations in multiple tranches up to Rs 1 lakh crore and open another six-month dollar-swap window, Governor Shaktikanta Das said today at a press conference.
In a swap, the RBI gives dollars to whichever bank is facing a dollar shortage. In a six-month, the transaction is reversed at the end of the period.
“To further improve monetary transmission, the RBI will conduct LTRO in multiple tranches upto Rs 1 lakh crore at policy rate. This will be followed by a review of our LTR,” Das said.
On March 2, the central bank had said that it received Rs 1.71 lakh crore in the third LTRO conducted for an amount of Rs 25,000 crore. The RBI received 66 bids in the three-year tenor LTRO, which has reversal date on March 1, 2023.
The RBI, however, did not carry out an interest rate cut as was expected by some market participants, adding that a decision on interest rates will be taken in the MPC meeting in early April.
“I am not ruling out any possibility of a rate cut. Depending on the evolving situation, we will determine our policy action,” he said
To be updated.