Monday, November 17, 2008

Steps To Improve Liquidity In Money Market - Nov 17, 2008

The Reserve Bank of India on Saturday, 15 November 2008, announced measures to improve money market liquidity and help exporters. The measures include extension of a special repurchase facility to provide liquidity for mutual funds and non-banking finance companies. till March 2009, increase in the limit on export credit refinance available to banks, allowing housing finance companies to raise funds.

Through short-term overseas borrowings, reduction in provisioning on standard assets of banks to a uniform level of 0.4%, and reduction in risk weights for banks on commercial real estate and on unrated claims on corporates.The central bank also said it would consider proposals from local firms to buy back foreign currency convertible bonds early.

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