 "RBI, reserve bank of india")
From Monday, there will be another intraday liquidity facility to enable 24x7 settlement of funds under the national electronic funds transfer (NEFT) payment system, the Reserve Bank of India (RBI) said on Friday.
The RBI provides collateralised liquidity adjustment facility once a day — cut recently from two such facilities a few months back — and banks can borrow additional liquidity under an emergency window called marginal standing facility (MSF).
The central bank recently allowed round-the-clock transfer under NEFT, but banks raised doubts about the settlement issue. The RBI’s new window, exclusively for the settlement purpose, will ease the pressure significantly.
All banks
