Search

RBI announces special liquidity measures for banks

Thursday, May 27, 2010
Print Print Email Email
Mumbai: The Reserve Bank of India (RBI) today allowed banks to draw additional funds from it by opening a second window, to meet the expected cash crunch in the system on account of Rs 1 lakh-crore demand of corporate to meet their 3G fee and advance tax payment requirement . At present, the Reserve Bank offers only one window-- the Liquidity Adjustment Facility (LAF)-- to banks between 9.30 am and 10.30 am everyday to lend or borrow from it against government securities. RBI manages daily money supply in the system through LAF. Starting from May 28, the apex bank will allow banks to avail of the second such measure for half an hour between 4 pm and 4.30 pm. The facility will allow banks to borrow more from the central bank to the tune of 0.5 per cent of their deposits. In the first LAF of the morning hours, banks can borrow or lend as much as their requirements. However, RBI sees money supply in the system before accepting or rejecting their demands. The second window may inject up to Rs 25,000 crore--0.5 per cent of the total bank deposits of Rs 50 lakh crore at present.
Source: PTI
Looking For Loan? Let us Help you !!!
Product
Name
City
Phone
Email
Loan Amount
Annual Income
Preferred banks
Captcha
Type the characters you see in the picture
  Submit
SPOTLIGHT
Brookfield to buy RIL E-W Pipeline
Canadian investor Brookfield has acquired the loss-making East-West Pipeline Ltd from Mukesh Amba..
Banks need to raise own capital
Public Sector Banks (PSBs) may raise capital themselves to meet regulatory and growth ..
90% of developing economies
Ninety per cent of developing economies, including India are falling behind or are at risk of fall..
Bharti Airtel board approves
Telecom major Bharti Airtel on Thursday said its board of directors has approved fund raising ..
Previous
Next