RBI unveils special cash support measures

RBI unveils special cash support measures

Mumbai: The Reserve Bank of India (RBI) on Friday unveiled special liquidity measures to tide banks over the temporary cash crunch.

The RBI said banks can avail funds under the special measures up to an additional 1% of their deposits.

The central bank will conduct two liquidity adjustment facility (LAF) auctions on 29 October and 1 November at 2:30 pm and 4:15 pm respectively.

The bank will also conduct a special 2-day repo auction on Saturday.

They added that the measures were temporary and were being taken to provide liquidity comfort arising out of frictional liquidity pressure.