To simplify and facilitate liquidity for primary dealers, the Reserve Bank of India (RBI) has decided to provide an additional amount of Rs 5,000 crore. According to an RBI statement, this amount will be available from January 31 at the current repo rate of 6.50 percent.
On Tuesday, the Reserve Bank of India (RBI) announced that an additional amount of Rs 5,000 crore will be made available to Standalone Primary Dealers (SPDs) under the Standing Liquidity Facility.
The central bank said that the decision to release the amount has been taken based on an assessment of the existing and emerging liquidity conditions.
The incremental limit for individual SPDs is being stated separately. All other terms and conditions of the facility will remain unchanged.
The primary dealer authorized to buy and sell government securities is an RBI registered entity.
Standalone primary dealers are registered as non-banking financial companies, which are subsidiaries of banks or entities incorporated under the Companies Act.