Reserve Bank of India (RBI) Extends Liquidity Management Measures up to May 6, 2011
On the basis of an assessment of the current liquidity situation, Reserve Bank of India (RBI) has decided to extend the following liquidity management measures, currently set to expire on April 8, 2011, as follows:
The additional liquidity support to scheduled commercial banks under the LAF to the extent of up to one per cent of their net demand and time liabilities (NDTL) is now extended up to May 6, 2011. For any shortfall in maintenance of the statutory liquidity ratio (SLR) arising out of availment of this facility, banks may seek waiver of penal interest on a fortnightly basis purely as an ad hoc, temporary measure.
The second LAF (SLAF) will be conducted on a daily basis up to May 6, 2011.
These facilities will be reviewed once a view is taken on the recommendations of Report of the Working Group on Operating Procedure of Monetary Policy (Chairman: Shri Deepak Mohanty).
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