Over the reform period, the market absorption of government securities was facilitated by reforms in the government securities market, which ensured market related rates of interest and thus some of the basic conditions were provided for developing a secondary market. BIS Review 62/1999  2  The short-term liquidity management is also aided by conduct of repos on a regular basis.
Usually, the RBI conducts repos for a maturity of up to 14 days, which is the cycle for reserve requirements. Recently, the RBI has been conducting 3-4 day fixed rate repos to absorb very short-term liquidity and to even out money market rates, especially overnight call money rates.