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E-mail ID will not be published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

  • The big challenge before India now is to figure out the real China

    Sino-Indian relations come under a rather special category, as far as ties between two neighbouring countries go.

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

Risks and effects of climate change

Research has shown that several people are aware of climate ...

Parvez Imam

Why we all have blood on our hands

What does the Jammu and Kashmir flood make us think? ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture