Author Archive
SLF-MF(Special Liquidity Facility for Mutual Funds)
Special Liquidity Facility for Mutual Funds was an unusual window announced by the Reserve Bank of India for ensuring liquidity support to mutual funds. RBI announced the Special Liquidity Facility for Mutual Funds (SLF-MF) on April 27,2020
Sovereign Gold Bonds (SGB) – Withdrawal options
Sovereign Gold Bond( SGB) is an attractive investment option provided by the Government of India. A total of 37 series of Sovereign Gold Bonds have been issued since November 2015. SGB, with the fixed interest pay of
SBI Wecare Deposit scheme offers 0.8% Senior Citizen benefit on TD
SBI Wecare Deposit is a new term deposit scheme announced by the largest commercial bank in India for Senior Citizens. The SBI Wecare scheme is announced to protect the interest income earned by senior citizens on their
WMA limit enhancement – How much?
WMA (Ways and Means Advance) facility enables states and Central government to tide over short term mismatches in cash flow by availing loan from the central bank. On April 17,2020 RBI announced an increase in the ways
Ways and Means Advance (WMA)–What is it?
Ways and Means Advance (WMA) is a mechanism through which RBI extends funding support to states and central government to enable them to tide over temporary cash flow mismatches. This can be considered similar to a bank
TLTRO 2.0-Targeted Long Term Repo Operation
TLTRO 2.0 (Targeted Long-Term Repo Operations) was announced by RBI on April 17, 2020. RBI intended that the funds raised by the banks through TLTRO 2.0 be utilised for investment grade bonds, commercial paper (CPs) and non-convertible
Targeted Long Term Repo Operations-TLTRO
Targeted Long-Term Repo Operations (TLTRO) is a special kind of LTRO or Long Term Repo Operation. LTRO is a special window announced by RBI to inject liquidity into the banking system for meeting their requirements in short
Marginal Standing Facility (MSF)
Marginal Standing Facility or MSF is a window that permits overnight borrowing by banks from RBI, at their discretion. MSF scheme is introduced to minimise volatility in the overnight lending rates in the inter-bank market (call market).
Liquidity Adjustment Facility (LAF) & Repo Transactions
Liquidity Adjustment Facility or LAF is a facility extended by the Reserve Bank of India to the scheduled commercial banks (excluding RRBs) and Primary Dealers (PDs) to meet their mismatches in daily liquidity. Under LAF, SCBs and
Open Market Operation (OMO) by Regulator
Open Market Operation (OMO) means the purchase or sale of government securities by the central bank of a country from / to the banks on its own account. The purpose of open market operation is ensuring sufficient