RBI Introduces Automated Sweep-In And Sweep-Out (ASISO) Facility For End Of Day LAF Operations

In order to optimise human resource deployment in the context of disruptions caused by COVID-19 and to provide eligible LAF/MSF participants greater flexibility in managing their end of the day cash reserve ratio (CRR) balances, the Reserve Bank has decided to provide an optional automated sweep-in and sweep-out (ASISO) facility in its e-Kuber system.

Accordingly, banks will be able to set the amount (specific or range) that they wish to keep as balances in their current accounts with the Reserve Bank at the end of the day. Depending upon this pre-set amount, marginal standing facility (MSF) and reverse repo bids, as the case may be, will be generated automatically without any manual intervention at the end of the day.

Participants eligible for availing the Liquidity Adjustment Facility (LAF) and the Marginal Standing Facility (MSF) will have the option to use the ASISO facility with effect from August 06, 2020. This facility is optional and is in addition to the existing mechanism of placing manual bids in the reverse repo and MSF windows through the e-Kuber portal.

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