RBI is pumping Rs. 20000 Crore into the market by special repo rate at 9% for 14 days purpose to meet the liquidity demand.
This is the RBI’s 2nd move after reducing CRR from 9% to 7.5% which will help the market by adding Rs. 60000 crore.
"The eligible banks and primary dealers may submit their applications electronically through National Negotiated Dealing system (NDS) between 2.30pm to 3.15pm on Tuesday," RBI said in a notification.
The loan will have to be returned to the RBI on October 29, it said.
In earlier posts I mentioned that RBI needs think of reducing the interest. Now by looking at inflation data for next 2-3 weeks they better ease the interest rate. Otherwise it may lead to stagflation.
1 comment:
Mutnal bhai ..... new update ... CRR reduced further by 100 BPS to 6.5% .. which will flush in 20000crs further into the market
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