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RBI fixes MSS ceiling at Rs 30,000 crore for current fiscal

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Press Trust of India Mumbai
Last Updated : Jun 22 2016 | 9:02 PM IST
Reserve Bank today said the ceiling under Market Stabilisation Scheme (MSS), a tool to manage liquidity, has been fixed at Rs 30,000 crore for the current fiscal.
"In accordance with the provisions of the Memorandum of Understanding on the Market Stabilisation Scheme (MSS), the ceiling for the outstanding balance under the MSS for the fiscal year 2016-17 has been fixed at Rs 30,000 crore", RBI said in a notification.
This ceiling will be reviewed when the outstanding balance reaches the threshold limit of Rs 15,000 crore.
The current MSS outstanding balance is zero, RBI added.
MSS are securities issued with the objective of providing RBI with a stock of securities with which it can intervene in the market for managing liquidity.
These securities are not issued to meet government's expenditure. The scheme was launched in 2004.

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First Published: Jun 22 2016 | 9:02 PM IST

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