News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« General »
 You may not get tax refund if you haven’t validated your bank account
 Senior citizen tax benefits: From income tax to pension – 10 exclusive points explained
 RBI panel pitches for federal body like GST Council in farm sector
 Why should we pay more property tax’
 New income tax rules come into effect from September 1. Latest changes explained
 No tax demand from startups sans appellate tribunal nod: CBDT
 What’s new for 2019 tax returns
 RBI to review minimum balance requirements for savings a/cs
 Income tax returns may have pre-filled mutual fund gains information
 Generation/Allotment/Quoting of Document Identification Number in Notiee/Order/Summons/letter/correspondence issued by the Income-tax Department
  Who all need to file their tax returns

RBI re-introduced liquidity easing measures to prevent disruption in financial
November, 10th 2010

The Reserve Bank of India re-introduced liquidity easing measures to prevent disruption in financial markets and maintain credit flow in the system as rising government cash balances lead to cash shortage.

A second liquidity adjustment facility (LAF) will be operational till December 16 and banks will be exempt from penalty up to a percentage point fall in the statutory liquidity ratio of 25%, the central bank said in a statement. It also made borrowing against corporate bonds more attractive.

The Reserve Bank has taken a number of steps, including open market operations , to alleviate liquidity pressure, said the statement. Even then, liquidity pressure continues reflecting the governments cash balances and other frictional liquidity demand.

Banks faced a shortfall of over . 1.13 lakh crore and borrowed overnight money at 6.25% from RBI on Monday and Tuesday. Banks borrowed overnight money market at 7.10%, much higher than 6.50% they paid a day ago, reflecting the crunch of funds in the system.

Although the central bank prefers shortage in the system as part of its policy to contain inflation, abnormal squeeze in the past has led to easing measures. This is the third such move in the past few months. The governments unspent revenue of . 75,000 crore is with RBI as on October 22, according to a central bank report .

Liquidity may tighten further since many state-run firms such as Power Grid, Sail, IOC, ONGC Shipping Corp and Hindustan Copper are looking at raising equity from the capital market.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions