The RBI did not receive any bids for the special repo auction conducted today for mutual fund players, which maintained there is enough liquidity in the system. This is the second consecutive day when this facility, opened last week, has not been used, according to RBI data.
Market players said there is enough liquidity in the system. Also, the actual redemptions, after RBI’s tightening measures to support rupee are much lower than the reported numbers, pegged at around Rs 50,000 crore, they said.
“There is enough liquidity to take care of redemption pressures. There was no need to fall back on repo window,” said Quantum Mutual Fund CEO Jimmy A Patel.