{"id":30845,"date":"2018-10-27T11:07:22","date_gmt":"2018-10-27T05:37:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=30845"},"modified":"2018-10-27T11:07:22","modified_gmt":"2018-10-27T05:37:22","slug":"rbi-to-inject-extra-liquidity-of-%e2%82%b91-lakh-cr","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-to-inject-extra-liquidity-of-%e2%82%b91-lakh-cr\/","title":{"rendered":"RBI to inject extra liquidity of \u20b91 lakh cr."},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/rbi-to-inject-extra-liquidity-of-1-lakh-cr\/article22936194.ece\"><b>RBI to inject extra liquidity of \u20b91 lakh cr.<\/b><\/a><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Reserve Bank said it would inject additional liquidity of <\/span><span style=\"font-weight: 400;\">\u20b9<\/span><span style=\"font-weight: 400;\">1 lakh crore in banks through longer tenor instruments to enable flexibility towards meeting their fund needs.<\/span><\/li>\n<\/ul>\n<p><b>Introduction:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This will be in addition to normal <\/span><b>Liquidity Adjustment Facility (LAF)<\/b><span style=\"font-weight: 400;\"> operations.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The RBI will conduct four variable rate term repo auctions of <\/span><span style=\"font-weight: 400;\">\u20b9<\/span><span style=\"font-weight: 400;\">25,000 crore each in March 2018.<\/span><\/li>\n<\/ul>\n<p><b>Rationale behind this decision:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To address additional demand for liquidity.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> To providing flexibility to the banking system in its liquidity management.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The proposed injection of additional liquidity will help cap the short-term rates and also aid in lowering the rate volatilities for the rest of the month.<\/span><\/li>\n<\/ul>\n<p><b>Liquidity adjustment facility (LAF)<\/b><span style=\"font-weight: 400;\"> :<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Liquidity adjustment facility (LAF) is a monetary policy which allows banks borrow money through repurchase agreements<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>RBI to inject extra liquidity of \u20b91 lakh cr. Context: The Reserve Bank said it would inject additional liquidity of \u20b91 lakh crore in banks through longer tenor instruments to enable flexibility towards meeting their fund needs. Introduction: This will be in addition to normal Liquidity Adjustment Facility (LAF) operations. The RBI will conduct four&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-to-inject-extra-liquidity-of-%e2%82%b91-lakh-cr\/\">Continue reading <span class=\"screen-reader-text\">RBI to inject extra liquidity of \u20b91 lakh cr.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-30845","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704895983},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=30845"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30845\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=30845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=30845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=30845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}