Repo / Reverse Repo

Repo is a short term borrowing for dealers in the Government securities. In India, Repo and Reverse Repo transactions are done only in Mumbai and only between the parties approved by Reserve Bank of India.

RBI sells and purchases the government Securities in Reverse Repo and Repo auctions. A summary of these auctions is released by RBI every day. For example on November 18, 2010 the following summary is released by the RBI.

The results of the RBI Repo/Reverse Repo auctions held on November 18, 2010 are:

 

Amount  (face value in ` crore)                          

Item

1 day Reverse Repo Auction
(Sale of securities by RBI)

1 day Repo Auction 
(Purchase of securities by RBI)

5.25% Fixed Rate

6.25% Fixed Rate

1. Bids received

  

  

(i)

Number

2

33

(ii)

Amount

1,500

57,330

2. Bids accepted

  

  

(i)

Number

2

33

(ii)

Amount

1,500

57,330

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