1. SLR-eligible bonds, T-Bills fit to be used for repo, reverse repo: RBI

SLR-eligible bonds, T-Bills fit to be used for repo, reverse repo: RBI

All statutory liquidity ratio (SLR)-eligible government bonds, state development loans and treasury bills will now be eligible to be used for repurchase (repo) and reverse repo transactions with the Reserve Bank of India, the regulator said in a notification on Thursday.

By: | Mumbai | Published: November 11, 2016 6:12 AM

All statutory liquidity ratio (SLR)-eligible government bonds, state development loans and treasury bills will now be eligible to be used for repurchase (repo) and reverse repo transactions with the Reserve Bank of India, the regulator said in a notification on Thursday.

SLR is that portion of a bank’s deposits which has to compulsorily be invested by banks in SLR-compliant government securities.

The apex bank also said that with effect from November 26, the valuation of these securities would be based on their then-prevalent market value, adding that it would use data published by Fixed Income Money Markets and Derivatives Association of India (FIMMDA) for the valuation process.

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