Market liquidity

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 ..

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 ..

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 ..

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 ..

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. ..

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 ..

CRR should be reduced: C Rangarajan

The Prime Minister’s Economic Advisory Council Chairman, C Rangarajan, has opined to reduce the use of CRR and suggested that it should be used only in extraordinary circumstances. As per him, the need for using it reduces with the option ..

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RBI cuts SLR, releases Rs 60,000 crore

RBI slashed the Statutory Liquidity Ratio (SLR) by 1 percentage point from 24 % to 23 % which is expected to provide liquidity of around Rs 60, 000 crore. It kept the major indicative policy rates unchanged while it slashed ..

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