Effective immediately, the move is aimed at maintaining abundant liquidity in the banking system and meeting the differentiated funding needs of various participating institutions in an improved manner, a statement by the central bank said.
The timing and scale of these operations will be determined based on liquidity management requirements, a state-controlled news outlet reported.
A reverse repo is a process in which the central bank purchases securities from commercial banks through a bidding process, with an agreement to sell them back in the future.
ALCHEMPro News Desk (DS)
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