RBI sets MSS intervention ceiling at Rs 50,000 cr

The Reserve Bank (RBI) has fixed the quantum of intervention through the Market Stabilisation Scheme (MSS) at Rs 50,000 crore for the current fiscal to manage liquidity.

Under the MSS, the RBI, on behalf of the government, absorbs liquidity by issuing Treasury Bills and/or dated securities.

"This ceiling will be reviewed when the outstanding balance reaches the threshold limit of Rs 35,000 crore. The current MSS outstanding balance is nil," it added.

The government, in consultation with the RBI, had launched the MSS in 2004 to absorb excess liquidity arising out of significant foreign exchange inflows.