STATESMAN NEWS SERVICE
Kolkata, 15 July
The Reserve Bank of India today announced a slew of measures to halt the falling rupee following which the Bank Rate stands adjusted to 10.25 per cent with immediate effect.
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.
The Reserve Bank will conduct open market sales of Government of India securities of Rs 12,000 crore on 18 July 2013. Details of the securities included for the OMO sale auction will be announced through a separate Press release tomorrow.
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 17 July 2013.
The Reserve Bank will continue to closely monitor the markets, the liquidity situation and the macroeconomic developments and will take such other measures as may be necessary.