As part of the special liquidity operations for the end of the Financial Year, the Reserve Bank of India said it will conduct fine-tuning variable rate repo auctions on March 26 and March 31 for Rs 250 billion each.

These auctions are to meet any additional/ unforeseen demand for liquidity and to provide flexibility to the banking system in year-end liquidity management.

As a special case, Standalone Primary Dealers will be allowed to participate in these auctions, along with other eligible participants, the RBI said on Thursday.

Furthermore, the central bank, as a one-time measure, has decided not to conduct any variable rate reverse repo auction for the fortnight beginning March 26 in order to ensure the availability of ample liquidity to manage year-end requirements.

The tenor of the March 26 auction will be for 11 days and that of the March 31 auction will be five days.