Departing from its regular practice, the Reserve Bank of India (RBI) Friday said it will remain open on July 1 this year to facilitate settlement of market transactions as well as of the general public.
The latest retail inflation data which has hit a nine-month high, could force the Reserve Bank of India (RBI) to unleash another 0.25 percent hike in its short-term lending rate, though concerns persist on the growth front, according to analysts here.
RBI Governor Raghuram Rajan Tuesday said the Finance Ministry's decision to provide more capital to PSU banks will lower the borrowing cost and increase their capacity to lend, besides promoting investments.
Welcoming the RBI's move to cut the marginal standing facility (MSF) rate, industry body Assocham Tuesday said the step will curb volatility in the interest rates and lower cost of borrowing for banks.
Mutual fund schemes with short-term investment horizon like liquid or ultra short-term funds are likely to witness higher returns going ahead following reduction in the marginal standing facility (MSF) rate by the central bank over the weekend, say fund managers.
The Reserve Bank of India will offer banks a special two-day funding window through the marginal standing facility or the emergency funding window, given the current market conditions, it said in a release on Saturday.
In order to ease the liquidity situation, the Reserve Bank today allowed banks to borrow additional amount from it under the Marginal Standing Facility (MSF), a new lending window which was opened by the central bank in the current fiscal.