Mumbai: The Reserve Bank of India (RBI) has set a 50,000 crore ceiling for the market stabilisation scheme (MSS), under which it sells government bonds to absorb the excess liquidity in the banking system. The ceiling valid for fiscal 2013-14 will be reviewed once it reaches 35,000 crore.

The liquidity crunch in the banking system has meant that RBI has had to infuse liquidity for the whole of 2012-13 by buying back bonds through so-called open market operations.

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