RBI extends scope of liquidity measures PDF Print E-mail
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Wednesday, 12 May 2004 11:54
MUMBAI: Reserve Bank of India (RBI) said on Friday it will extend a special refinance facility for banks until June 30, 2009, and will also make available concessional credit to exporters for a longer period of time. Following are details of the measures taken by the Reserve Bank of India (RBI): * A special refinance facility, under which banks can borrow up to the value of 1 percent of their deposits for up to 90 days, will be continued until June 30, 2009. * Extends scope of special liquidity adjustment facility to include housing finance companies. Banks are currently allowed to use up to 1.5 percent of their bond reserve requirements as collateral at the RBI's repo window to meet the funding needs of mutual funds and non-banking finance companies. The end date for the facility is extended to June 30, 2009. * The availability of a three-month foreign exchange swap facility to meet funding needs of Indian banks' foreign subsidiaries/branches to be extended to June 30, 2009. * The length of a post-shipment concessional rupee credit at a concessional rate for exporters to be extended to 180 days from 90 days, effective from Dec. 1. The moves are part of a slew of measures taken by the central bank since the middle of September to ease a credit squeeze following the global economic crisis and improve lending to boost the slowing economy.
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