With a total Rs 374,000 crore pumped into the system, the RBI actions will significantly help liquidity easing in the system.
As expected, the RBI announced substantial liquidity measures saying it will conduct upto three-year tenure for an amount of upto Rs 100,000 crore at a floating rate linked to policy repo rate.
Under this, liquidity has to be deployed in investment grade corporate bonds, commercial papers, the RBI said. Investment made by banks will be considered as held to maturity, the RBI said.
The RBI has also cut CRR (cash reserve ratio) heavily by 100 bps to 3 percent of NDTL, effective from the fortnight beginning March 28, releasing Rs 137,000 crore liquidity in the banking system, Das said. The minimum daily requirement of CRR maintenance has been brought down to 80 percent from 90 percent.
Also, the marginal standing facility, from 2 percent to 3 percent of SLR, released additional Rs 1.37 lakh crore to the system under the LAF window at the reduced MSF rate, the RBI governor said.With a total Rs 374,000 crore pumped into the system, the RBI actions will significantly help liquidity easing in the system.
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