RBI sees developing repo markets necessary in meeting Basel liquidity rules

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RBI building in Mumbai

Liquid repo markets will aid banks trying to meet Basel III's liquidity requirements, according to the Reserve Bank of India's chief general manager, financial markets, G Mahalingam.

In May last year, the RBI-organised working group on enhancing liquidity in the government securities and interest rate derivatives markets published its draft report, in which it was agreed that a liquid repo market was a necessary adjunct to having a liquid domestic government securities market.

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