The Reserve Bank of India (RBI) has declared that it will be conducting a special repo auction for Rs 598.30 billion on Thursday, March 12.

In a statement, the apex bank said that the reversal of the auction will be on March 26.

The liquidity from a special fixed rate term repo auction at 5% per annum (p.a.) against eligible securities will be provided to mutual funds (MF), non-banking financial companies (NBFC) and housing finance companies (HFC) either on incremental or on rollover basis.

Under this facility, the outstanding sum as on March 09, 2009 was Rs 1.70 billion.

RBI raised the Liquidity Adjustment Facility (LAF) daily till September 30, 2009 up to Rs 600 billion on outstanding basis in order to include liquidity needs of non-banking financial companies and housing finance companies