RBI signs currency swap pact with Sri Lanka's Central Bank

Reserve Bank today said it has signed a Special Currency Swap Agreement with the Central Bank of Sri Lanka.
Under the arrangement, the Central Bank of Sri Lanka can draw up to USD 700 million for a maximum period of three months.
"This special arrangement is in addition to the existing Framework on Currency Swap Arrangement for the SAARC Member Countries," the RBI said in a statement.
The proposal to extend the additional currency swap facility of USD 700 million to Sri Lanka for a limited period was decided with concurrence of the Government in March 2016 for short-term liquidity management in the context of India's strong bilateral relations and economic ties with Sri Lanka.

Meanwhile RBI has announced special measures during the annual closing of Accounts of Banks on March 30 and 31, 2016.
"Taking into account the extended banking hours for conducting Government business on March 30 and 31, 2016, and with a view to providing flexibility to the banking system for its liquidity management, the Reserve Bank has decided to modify the timings of Reverse Repo and MSF operations to be conducted on March 30 and 31, 2016," a release said.
Accordingly, as against the normal time of 5.30 pm to 7.30 pm for conduct of Reverse Repo/MSF, the modified timings of Reverse Repo/MSF, on March 30 and 31, 2016 would be 7.30 pm to 11.45 pm.

Further, RBI will continue to closely monitor the evolving liquidity conditions and will conduct appropriate liquidity operations, as may be required.