MSS ceiling fixed at Rs 50,000 cr for current fiscal

Tags: News
The Reserve Bank has fixed the quantum of intervention through Market Stabilisation Scheme (MSS) at Rs 50,000 crore to manage liquidity.

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

"The ceiling for outstanding balance under the MSS for the fiscal year 2014-15 has been fixed at Rs 50,000 crore," the RBI said in a statement.

"This ceiling will be reviewed when the outstanding balance reaches the threshold limit of Rs 35,000 crore," it said.

The government launched MSS in consultation with RBI in 2004 with the objective to absorb excess liquidity, arising out of significant foreign exchange inflows, by issuing treasury bills or dated securities.

The Government issues treasury bills and/ or dated securities under the MSS. This is in addition to its normal borrowing requirements.

For the current fiscal, the government has pegged its borrowing requirements at Rs 5.97 lakh crore. Of this, about 61.5 per cent or Rs 3.68 lakh would be borrowed in the April- September period.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Child abuse needs to be tackled with the seriousness it deserves

    The Bangalore rape case has again brought into focus an issue we Indians forever shy away from facing up to — child sexual abuse.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: THE BASE RATE BIAS

Base rate fallacy, also called base rate neglect or base ...

Parvez Imam

Revisiting history can do us all good

We often think that we understand history. We read it ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture