RBI fixes annual ceiling of MSS at Rs 70,000 cr

Mumbai, Mar 24 (UNI) Reserve Bank of India (RBI) has fixed the annual ceiling for the Market Stabilisation Scheme (MSS) at Rs 70,000 crore for the coming fiscal year.

The ceiling was lower as compared to Rs 80,000 crore that was fixed for the current year 2005-06.

According to a RBI release, the threshold level at which the ceiling will be reviewed in 2006-07 has been fixed at Rs 60,000 crore. The revised ceilings and thresholds have been agreed upon between the Union Government and RBI.

It may be recalled that on December 30 last year, RBI had announced its decision to suspend the issue of Treasury Bills and dated securities under the MSS. This decision would continue till such time as is necessary, the release said.

However, within the overall MSS ceiling for 2006-07, the apex bank would retain the flexibility of conducting auctions under the MSS from time to time with sufficient notice to the market, in response to evolving circumstances, it added.

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