Overview

• RBI will shift its primary liquidity operation to 7-day variable-rate repo auctions beginning with the August 6 policy meeting
• The central bank plans to formally launch the Secured Overnight Reference Rate based on triparty repo trades to replace MIBOR
• Sources say RBI does not intend to reinstate a daily fixed-rate repo facility and will maintain variable-rate operations
• Banks had sought an on-tap fixed-rate window and relief on cash reserve requirements to smooth funding costs
• A recent circular grants qualifying co-operative banks greater operational autonomy under new financial and governance criteria