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Security Problems? Reserve Bank of India (RBI) increases Ceiling on Market Stabilisation Scheme (MSS) to Rs 6,000 Billion

In June 2016, the ceiling for the outstanding balance under MSS for 2016-17 was fixed at Rs 30,000 crore

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Chennai, December 2, 2016: In an attempt to manage the liquidity surplus following demonetization of Rs 500/1,000 notes, the central government, on Reserve Bank of India’s (RBI) advice, on Friday revised upwards the ceiling for the issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion.

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In a statement, the RBI said: “After the withdrawal of the legal tender character of the Rs 500 and Rs 1,000 denomination notes with effect from November 9, 2016, there has been a surge in the deposits with the banks.

“Consequently, there has been a significant increase of liquidity in the banking system which is expected to continue for some time.”

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In order to facilitate liquidity management operations by RBI in the current scenario, the government has, on RBI’s recommendation, decided to revise the ceiling for the issue of securities under MSS to Rs 6,000 billion, it added.

In June 2016, the ceiling for the outstanding balance under MSS for 2016-17 was fixed at Rs 30,000 crore. (IANS)

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RBI To Transfer 50,000cr Surplus To The Central Government

The Reserve Bank's income comprises of earnings from foreign and domestic sources, with the major portion being contributed by interest receipts, complemented by relatively small amounts of income from discount, exchange, commission, etc.

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Reserve Bank of India. VOA

The Reserve Bank of India (RBI) on Wednesday said that it will transfer Rs 50,000 crore as surplus to the central government for the year ended June 30, 2018.

The Central Bank which follows the July-June year had transferred Rs 30,659 crore to the government’s coffers for the year ended June 30, 2017.

According to RBI, the decision to transfer the surplus was taken by its Central Board which met here on Wednesday.

The Central Bank which follows the July-June year had transferred Rs 30,659 crore to the government's coffers for the year ended June 30, 2017.
The Central Bank which follows the July-June year had transferred Rs 30,659 crore to the government’s coffers for the year ended June 30, 2017.

The Reserve Bank’s income comprises of earnings from foreign and domestic sources, with the major portion being contributed by interest receipts, complemented by relatively small amounts of income from discount, exchange, commission, etc.

Also Read: RBI Penalty not to have any material impact: IDBI Bank

The RBI Act stipulates that after making provisions for contingencies and corpus funds as defined therein, the balance profit of the apex bank is to be transferred to the central government. (IANS)