The Reserve Bank of India (RBI) today partially discontinued special window to give extra cash to the banks, which was provided to tide over liquidity crunch following the government mopping up over Rs 1 lakh crore from the telecom firms for 3G and broadband auctions.
"While the Second Liquidity Adjustment Facility (SLAF) conducted on a daily basis since May 28, 2010 expires on July 30, 2010, it will continue to be held on reporting Fridays," RBI said in a release.
The RBI announced the special measures under which it started a second Liquidity Adjustment Facility (LAF) window for banks to the extent of up to 0.5 per cent of their deposits, a second round of LAF.
The second LAF auction is conducted between 4 pm and 4.30 pm.
The apex bank also assured that banks can seek waiver for any shortfall in maintaining the Statutory Liquidity Ratio (SLR) requirement.
On July 16, the RBI extended this facility to banks by two weeks to July 30 as the liquidity in the system remained tight.
An outgo of Rs 1,36,000 crore happened in the last two months on account of the payment by telecom companies for 3G auction waves, Broadband Wireless Access and Advance Tax.