India cbank to hold term repo auctions in March anticipating tight liquidity

Last Updated: Tue, Feb 18, 2014 13:10 hrs

MUMBAI, Feb 18 (Reuters) - The Reserve Bank of India will conduct term repo auctions in March to address anticipated liquidity tightness emerging from corporate advance tax outflows, which are slated around the middle of next month.

"In order to address the anticipated tightening in the liquidity conditions ... and with a view to providing flexibility to the banking system in its liquidity management towards March-end 2014, Reserve Bank will conduct term repo auctions of appropriate amount and tenor during March 2014," the RBI said in a notification on Tuesday.

The central bank said it would announce details of the auctions in due course. (Reporting by Neha Dasgupta; Editing by Anand Basu)

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