R B I Acts
In an effort
to contain the slide in the rupee value, RBI has imposed new restrictions and
actions.
Liquidity Adjustment Facility: This was allowed up to 1% of the total
deposits when introduced originally and was available for a period of 14 days
maximum. On July 16, this year RBI put a ceiling of Rs 75,000crores under this
facility. This restriction was completely removed yesterday ie 23rd
July (within a week of the earlier notification) and instead a ceiling of 0.5%
of the total deposits instead of the original 1% of the total deposits has been
introduced. This measure is likely to suck out around Rs 5000 crores from the system.
In an
extension of this notification, RBI has further limited that the funds under
this head to standalone Primary Dealers will be limited to 100% of their net
owned funds as per the latest audited balance sheet.
Cash Reserve Ratio: In a drastic change from the existing rules,
RBI has now directed all banks to maintain 99% of their CRR requirement on a daily basis. Earlier this was
allowed at 70% of the CRR requirement and the actual maintenance of the CRR was
on a fortnightly basis. This measure again is expected to suck out around Rs
5000 crores from the system.
No comments:
Post a Comment