Against this backdrop, and the need to restore stability to the foreign exchange market, the following measures are announced: The Marginal Standing Facility (MSF) rate is recalibrated with immediate effect to be 300 basis points above the policy repo rate under the Liquidity Adjustment Facility (LAF). Consequently, the MSF rate will now be 10.25 per cent. Accordingly, the Bank Rate also stands adjusted to 10.25 per cent with immediate effect. The overall allocation of funds under the LAF will be limited to 1.0 per cent of the Net Demand and Time Liabilities (NDTL) of the banking system, reckoned as Rs.75,000 crore for this purpose. The allocation to individual banks will be made in proportion to their bids, subject to the overall ceiling. This change in LAF will come into effect from July 17, 2013. The Reserve Bank will conduct Open Market Sales of Government of India Securities of Rs.12,000 crore on July 18, 2013. Details of the securities included for the OMO sale auction will be announced through a separate press release tomorrow. rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=29086
Posted on: Tue, 16 Jul 2013 03:54:41 +0000