The Reserve Bank of India (RBI) today partially discontinued special window to give extra cash to the banks, which was provided to tide over liquidity crunch following the government mopping up over Rs 1 lakh crore from the telecom firms for 3G and broadband auctions.
"While the Second Liquidity Adjustment Facility (SLAF) conducted on a daily basis since May 28, 2010 expires on July 30, 2010, it will continue to be held on reporting Fridays," RBI said in a release.
The RBI announced the special measures under which it started a second Liquidity Adjustment Facility (LAF) window for banks to the extent of up to 0.5 per cent of their deposits, a second round of LAF.
The second LAF auction is conducted between 4 pm and 4.30 pm.
The apex bank also assured that banks can seek waiver for any shortfall in maintaining the Statutory Liquidity Ratio (SLR) requirement.
On July 16, the RBI extended this facility to banks by two weeks to July 30 as the liquidity in the system remained tight.
An outgo of Rs 1,36,000 crore happened in the last two months on account of the payment by telecom companies for 3G auction waves, Broadband Wireless Access and Advance Tax.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app