RBI announces special cash support measures

The Reserve Bank of India (RBI) on Friday unveiled special liquidity measures to tide banks over the temporary cash crunch.                                           
 

The RBI said banks can avail funds under the special measures up to an additional 1% of their deposits.                                           
 

The RBI will conduct two liquidity adjustment facility (LAF) auctions on October 29 and November 1 at 2.30pm and 4.15pm respectively.                 

The bank will also conduct a special 2-day repo auction on Saturday.                                           

They added that the measures were temporary and were being taken to provide liquidity comfort arising out of frictional liquidity pressure.