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RBI increases ceiling on Market Stabilisation Scheme to Rs 6,000 bn

IANS  |  Chennai 

In an attempt to manage the liquidity surplus following of Rs 500/1,000 notes, the central government, on Reserve of India's (RBI) advice, on Friday revised upwards the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion.

In a statement, the RBI said: "After the withdrawal of the legal tender character of the Rs 500 and Rs 1,000 denomination notes with effect from November 9, 2016, there has been a surge in the deposits with the banks.

"Consequently, there has been a significant increase of liquidity in the banking system which is expected to continue for some time."

In order to facilitate liquidity management operations by RBI in the current scenario, the governmenthas, on RBI's recommendation, decided to revise the ceiling for issue of securities under MSS to Rs 6,000 billion, it added.

In June 2016, the ceiling for the outstanding balance under MSS for 2016-17 was fixed at Rs 30,000 crore.

--IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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RBI increases ceiling on Market Stabilisation Scheme to Rs 6,000 bn

In an attempt to manage the liquidity surplus following demonetisation of Rs 500/1,000 notes, the central government, on Reserve Bank of India's (RBI) advice, on Friday revised upwards the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion.

In an attempt to manage the liquidity surplus following of Rs 500/1,000 notes, the central government, on Reserve of India's (RBI) advice, on Friday revised upwards the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion.

In a statement, the RBI said: "After the withdrawal of the legal tender character of the Rs 500 and Rs 1,000 denomination notes with effect from November 9, 2016, there has been a surge in the deposits with the banks.

"Consequently, there has been a significant increase of liquidity in the banking system which is expected to continue for some time."

In order to facilitate liquidity management operations by RBI in the current scenario, the governmenthas, on RBI's recommendation, decided to revise the ceiling for issue of securities under MSS to Rs 6,000 billion, it added.

In June 2016, the ceiling for the outstanding balance under MSS for 2016-17 was fixed at Rs 30,000 crore.

--IANS

vj/vd

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22

RBI increases ceiling on Market Stabilisation Scheme to Rs 6,000 bn

In an attempt to manage the liquidity surplus following of Rs 500/1,000 notes, the central government, on Reserve of India's (RBI) advice, on Friday revised upwards the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion.

In a statement, the RBI said: "After the withdrawal of the legal tender character of the Rs 500 and Rs 1,000 denomination notes with effect from November 9, 2016, there has been a surge in the deposits with the banks.

"Consequently, there has been a significant increase of liquidity in the banking system which is expected to continue for some time."

In order to facilitate liquidity management operations by RBI in the current scenario, the governmenthas, on RBI's recommendation, decided to revise the ceiling for issue of securities under MSS to Rs 6,000 billion, it added.

In June 2016, the ceiling for the outstanding balance under MSS for 2016-17 was fixed at Rs 30,000 crore.

--IANS

vj/vd

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22