Legal UpdatesRBI

RBI decides to continue with marginal standing facility till 31st March,2021

RBI Update

In order to comfort the banks on their liquidity requirements and enable them to continue to meet Liquidity Coverage ratio (LCR) requirements, RBI decides to continue with the Marginal Standing facility (MSF) relaxation for a further period of 6 months, i.e., up to March 31, 2021. Further, in view of disruptions imposed by COVID-19 RBI decides to increase access to funds to the extent of ₹1.49 lakh crore, and also qualifies as high-quality liquid assets (HQLA) for the Liquidity Coverage ratio (LCR). 

On March 27, 2020 RBI had permitted banks to avail of funds under the MSF by dipping into the Statutory Liquidity Ratio (SLR) by up to an additional 1% of net demand and time liabilities (NDTL), i.e., cumulatively up to 3 % of NDTL. This facility, which was initially available up to June 30, 2020 was extended on June 26, 2020 up to September 30, 

 

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