In its efforts to manage liquidity, the Reserve Bank of India (RBI) has set a cap of Rs 50,000 crore for managing liquidity through Market Stabilisation Scheme (MSS) Bonds.
The threshold at which this ceiling will be reviewed is when the outstanding reach Rs 35,000 crore, RBI said in a statement.
The ceiling and the threshold for 2009-10 have been agreed between the government of India and the Reserve Bank, it said.
The current MSS outstanding balance (face value) is Rs 23,273 crore, it said, adding MSS redemptions of Rs 15,536 crore are due during the remaining part of the current fiscal year.
MSS bonds are used to suck out or release money in the market after RBI's interventions to maintain the stable exchange rate in forex markets.
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