Standing Liquidity Support Rationalised

The RBI has rationalised the standing liquidity support availed from it as the banking system is currently reeling under excess liquidity. With effect from November 16, the apportionment of normal and back-stop facilities, which is at present in the ratio of 67:33, will be 50:50.

The central bank, in its mid-term review of the Credit and Monetary Policy, has reasoned that as utilisation of the export credit refinance (ECR) remained low during the year so far in view the existing liquidity situation, hence the change in the apportionment ratio.