RBI extends special liquidity measures till May 6
PRESS TRUST OF INDIA
Mumbai, Apr 8: The Reserve Bank of India (RBI) on Friday extended its special measures for easing the money supply till May 6 in view of the current liquidity situation.
The special liquidity management measures, that were to end today, have been extended by nearly a month even though credit offtake is generally low in the first quarter of a financial year.
As far as liquidity in the system is concerned, bankers are of the view that it has improved substantially compared to December last year.
On the basis of an assessment of the current liquidity situation, it has been decided to extend liquidity management measures, currently set to expire on April 8, 2011, RBI said in a statement.
Banks are allowed to avail additional liquidity support under the Liquidity Adjustment Facility to the extent of up to 1 per cent of their total deposits. This facility is now extended up to May 6.
“For any shortfall in maintenance of the statutory liquidity ratio (SLR) arising out of availment of this facility, banks may seek waiver of penal interest on a fortnightly basis purely as an ad hoc, temporary measure,” it said.
Besides, the second LAF will be conducted on a daily basis till the extended period.
Borrowing from the second LAF window has come down to about Rs. 60,000 compared to Rs. 1,75,000 crore in December, 2010.
Lastupdate on : Fri, 8 Apr 2011 21:30:00 Makkah time
Lastupdate on : Fri, 8 Apr 2011 18:30:00 GMT
Lastupdate on : Sat, 9 Apr 2011 00:00:00 IST
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