IT:RBI takes steps to tighten liquidity, support rupee
Mumbai: The Reserve Bank of India on July 23 announced further measures to tighten banking system liquidity and to stabilize the falling rupee.
The RBI set the overall limit for borrowing under the daily liquidity adjustment facility (LAF) for each bank at 0.5 percent of deposits, outstanding as of the last Friday of the reporting cycle two weeks prior to the current one.
The central bank, also said banks need to maintain 99 percent of their daily cash reserve ratio requirements with the RBI, as against 70 percent now.
This measure takes effect from the two-weekly period starting July 27.
