Govt hikes MSS ceiling to Rs 1,10,000cr

The central government, in consultation with the Reserve Bank of India, has revised the ceiling for outstandings under the market stabilisation scheme (MSS) for the year 2007-08 to Rs 1,10,000 crore from Rs 95,000 crore.

According to a release issued by RBI today, the threshold at which the ceiling will be reviewed in future will now be Rs 95,000 crore. The MSS outstandings currently stand at Rs 78,000 crore.

"The Reserve Bank, under the existing arrangements, subject to variations in liquidity, announces every Friday the auctions under the MSS, covering the treasury bills and dated securities, if any, for the succeeding week. These arrangements would continue until further notice," the release added.

The central bank had on, April 25, hiked the limit to Rs 95,000 crore from Rs 80,000 crore.