Reserve Bank of India (RBI) has
reduced the Marginal Standing Facility (MSF) rate by 150 basis points from
10.25 per cent to 8.75 per cent during September 20, 2013 to October 29, 2013
and increased the repo rate by 50 basis points from 7.25 per cent to 7.75 per
cent during the same period. The policy initiatives announced by RBI are aimed
at supporting growth for the development of the economy and anchoring
inflationary expectations.
RBI has taken the following measures
to improve liquidity conditions in the market:
i) reduction in the Marginal Standing Facility (MSF) rate from
10.25 per cent to 8.75 per cent;
ii) reduction in the minimum daily Cash Reserve Ratio (CRR)
balance maintained by the banks to 95 per cent of the requirement from 99 per
cent;
iii) introduction of weekly variable rate term repos of 7-day
and 14-day tenors for an amount equivalent to 0.5 per cent of the Net Demand
and Time Liability (NDTL) of the banking system; and
iv) open market purchase auctions since August 2013, thereby
injecting primary liquidity of Rs. 285.9 billion into the banking system.
The RBI has also provided refinance
facility of Rs. 5,000 crore to Small Industries Development Bank of India
(SIDBI) to ease liquidity stress faced by medium, micro and small enterprises.
This was stated by Minister of State
for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok
Sabha today.
0 comments:
Post a Comment