RBI to inject more cash into banks at March-end

The Reserve Bank of India (RBI) has decided to provide additional cash to banks if needed ahead of March-end to give flexibility to lenders to manage their liquidity mismatches.

The RBI said on Tuesday that the RBI will be ready to inject adequate amount of extra cash into banks ahead of the quarter-end, while the banks typically face liquidity problem.

The 10-year benchmark bond yield briefly eased by 1 basis point to 7.58 per cent, but came back to 7.59 per cent as hopes of open market purchases of bonds stayed feeble, reports Reuters.

The central bank will also allow standalone primary dealers to avail term repo auctions on March 28, it said.