Market liquidity Current Affairs, GK & News
RBI increases banks’ loan exposure limit to single NBFC
The Reserve Bank of India (RBI) has increased loan exposure limit of banks to a single NBFC. This is expected to help increase credit supply to the crisis-ridden shadow banking sector. Relaxation of Norms As per the Large Exposures Framework (LEF), Banks’ exposure to a single non-banking financial company (NBFC) was restricted to 15% of their available ..
Topics: Bank • Banking • Economy • Finance • Liquidity crisis • Market liquidity • Money • NBFC & MFI in India • Non-bank financial institution • Reserve Bank of India
RBI tweaked LCR norms to boost liquidity
In a bid to further improve the cash position of banks, the Reserve Bank of India (RBI) has recently tweaked Liquidity Coverage Ratio (LCR) norms to provide an additional 2% window to lenders. The move will harmonise the liquidity requirements of banks and release additional money for lending. The LCR indicates the proportion of highly ..
Topics: Bank • Banking • Economy • Financial markets • Financial services • Interest rate • Market liquidity • Monetary Policy • Money • Reserve Bank of India
RBI decides to inject liquidity via forex swaps
The Reserve Bank of India (RBI) has decided to inject rupee liquidity into the system through long-term foreign exchange buy/sell swap — a first-of-its-kind instrument used for liquidity management. The RBI would conduct dollar-rupee buy/sell swap auction of $5 billion for tenor of 3 years on March 26 to inject rupee liquidity for longer duration. ..
Topics: Auction • Bond • Economy • Finance • Financial markets • Market liquidity • Monetary Policy • Monetary reform • Money • Open market operation • Reserve Bank of India • Swap
Central Bank auctions Treasury Bills under MSS
Reserve Bank of India today auctioned 35-days Treasury Bills worth Rs. 60,000 Crores under the aegis of Market Stabilization Scheme as a step to clean the extra liquidity from the system. The bids were submitted via an electronic format on the Reserve Bank of India Core Banking Solution System known as E-Kuber. The generic character ..
Category: Government Schemes Current Affairs
Topics: Banks • Central bank • Economy • Finance • Finance in India • Financial markets • Market liquidity • Monetary Policy • Money • Open market operation • Reserve Bank of India
RBI revises Market Stabilisation Scheme (MSS), raises ceiling to Rs. 6L crore
In a major move to deal with extra liquidity created in the system due to the demonetisation drive, the Central government as per the directions of the Reserve Bank of India raised the ceiling on Market Stabilization Scheme from Rs. 30,000 Crores to Rs. 6 Lakh Crores. The Banks saw a huge surge in deposits ..
Category: Government Schemes Current Affairs
Topics: Economy • Finance in India • Indian banknote demonetisation • Market liquidity • Monetary Policy • Monetary reform • Money • Open market operation • Reserve Bank of India
RBI has introduced Incremental CRR
To absorb the surplus liquidity available in the banking system post demonetisation, the Reserve Bank of India (RBI) has mandated the banks to maintain incremental cash reserve ratio of 100% effective the fortnight ended November 26. It will be applicable to deposits made between September 16 and November 11 fortnights. According to RBI data, total ..
Topics: Bank • Banking • Economy • Financial economics • Financial ratios • Financial services • Market liquidity • Monetary policy • Money • Open market operation • Reserve Bank of India • Reserve requirement