Page 14 - Liquidity

Treasury bill yields start inching higher on liquidity normalisation

RBI last week stepped into normalise its ultra-loose liquidity policy by introducing a Rs 2 trillion 14-day reverse repo auction.

ESOP Direct set to ease managing of ESOP Liquidity events in Unlisted companies through ESOP Leap as a managed service

This platform enables the company to plan, execute and comply payoffs to its employees seamlessly.

Senior citizens: Strike a balance between tax saving and liquidity

They must also maximise the utilisation of the higher deductions available to them

Short-term interest rates increase 25-30 basis points, shows data

The reason why short-term rates have spiked is liquidity normalisation

Borrowing cost surges in bond market over RBI's measures to drain out cash

The surge comes after the Reserve Bank of India announced plans last week to restore normalcy to liquidity operations in markets in a phased manner

RBI indicates slow departure from ultra-loose liquidity policy

RBI to restore liquidity operations timing to normal hours in a phased manner, to start with variable rate reverse repo window from Jan 15

RBI to resume normal liquidity management operations in phased manner

The RBI on Friday said it has decided to restore normal liquidity management operations in a phased manner and will conduct variable rate reverse repo auction of Rs 2 lakh crore on January 15. In February last year, RBI had announced a revised Liquidity Management Framework (LMF) that was simplified and "clearly communicated" the objectives and toolkit for liquidity management. However, in view of the COVID-19 outbreak, the rapidly evolving financial conditions and taking into account the impact of disruptions due to the lockdown, RBI had decided to temporarily suspend the revised LMF and the window for Fixed Rate Reverse Repo and Marginal Standing Facility (MSF) operations were made available throughout the day. This was intended to provide eligible market participants with greater flexibility in their liquidity management. "On a review of evolving liquidity and financial conditions, it has been decided to restore normal liquidity management operations in a phased manner," RBI ...

RBI to conduct this year's 2nd Operation Twist on January 14

The decision was taken after a review of current liquidity and financial conditions

Liquidity returns to banking system, interbank call rates softening

This indicates that the liquidity deficit witnessed after December 15 was mainly because of advance tax outflow, and not because of any extra effort by the central bank to drain out liquidity

RBI's liquidity measures bring down top-rated corporate bond spreads

The yield contraction helped companies raise money and tide over the tight liquidity conditions they were facing after defaults by prominent NBFCs such as IL&FS and DHFL

MPC members dive deep on low rates, excess liquidity and sticky inflation

These issues weren't discussed in such details in policy statement, or in post-policy press conference, even when the members seemingly unanimously voted to keep policy rate unchanged at 4%

Winding down liquidity to be challenge for RBI going forward: Subbarao

Ex-RBI governor says road map for fiscal consolidation starting 2022 would be prudent. Though expansionary fiscal policy is a pressing need, govt spend on health and education would benefit economy

Preserve financial stability

Higher inflation tolerance will increase risks

Acharya warns against systemic risk building on low rates, high liquidity

Acharya warned that both conditions are prevalent in India. Given India's macro constraints, where the government is spending more relative to the Indian households' savings

RBI proposes liquidity enhancing measures for RRBs, directions to come soon

After banks and NBFCs, the Reserve Bank of India (RBI) has now decided to facilitate a more efficient liquidity management in Regional Rural Banks

Sebi directs open-ended debt MFs to maintain 10% liquidity buffer

Cash, government securities, treasury-bills and repo on government securities qualify as 'liquid assets'

Left out of on-tap TLTRO benefits, NBFCs approach RBI for inclusion

While sectors including agriculture, MSME and retail are covered, NBFCs have not been included as a beneficiary of the facility

RBI to conduct first OMO for state bonds worth Rs 10,000 cr on Oct 22

Size may be enhanced in the subsequent auctions depending on market response

Rs 11.1 trillion: Amount RBI pumped into banking system to boost liquidity

It pared repo rate by 40 bps on May 22, on top of a 75 bps cut on March 27, brought liquidity enhancing steps that stabilised bond yields even in the face of a Rs 12 trn borrowing programme

Few takers for special liquidity scheme due to stringent eligibility rules

The use of liquidity facility remains low due to factors such as consolidation of business, stringent eligibility rules and short tenure