RBI introduces ASISO facility to help banks manage liquidity in times of COVID-19

In view of the disruptions caused by COVID-19, the Reserve Bank of India on Thursday introduced an optional automated sweep-in and sweep-out (ASISO) facility in electronic platform e-Kuber system to help banks manage liquidity. Under the ASISO facility, banks will be able to set the amount (specific or range) that they wish to keep as balances in their current accounts with the Reserve Bank of India (RBI) at the end of the day.

"Depending upon this pre-set amount, marginal standing facility (MSF) and reverse repo bids, as the case may be, will be generated automatically without any manual intervention at the end of the day," the RBI said in a press release.

The introduction of the ASISO facility for end-of-the-day Liquidity Adjustment Facility (LAF) operations, the RBI said, will help banks optimise "human resource deployment in the context of disruptions caused by COVID-19 and to provide eligible LAF/MSF participants greater flexibility in managing their end-of-the-day cash reserve ratio (CRR) balances".

It said participants eligible for availing LAF and MSF will have the option to use the ASISO facility with effect from August 6, 2020. This facility is optional and is in addition to the existing mechanism of placing manual bids in the reverse repo and MSF windows through the e-Kuber portal, the RBI added.

The central bank further said the facility to set or modify ranges for end-of-the-day current account balances will be available on all real-time gross settlement (RTGS) working days between 9 am and 11:30 pm.

Participants using the facility can set separate maximum and minimum balance limits (in rupee crore) for their current accounts linked to LAF and MSF operations.