CURRENT AFFAIRS

Detailed explanation-1: -On May 5, 2021, an on-tap liquidity window of ₹50, 000 crore at the repo rate with tenors of up to three years was announced to boost provision of immediate liquidity for ramping up COVID-19 related healthcare infrastructure and services in the country.

Detailed explanation-2: -As announced in the Monetary Policy Statement dated December 07, 2022, it has been decided by the Monetary Policy Committee (MPC) to increase the policy repo rate under the Liquidity Adjustment Facility (LAF) by 35 basis points from 5.90 per cent to 6.25 per cent with immediate effect.

Detailed explanation-3: -Repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Central Bank of our country i.e. Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures. It is one of the main tools of RBI to keep inflation under control.

Detailed explanation-4: -India’s banking system liquidity surplus has averaged above 1.50 trillion rupees ($18.11 billion) on a daily basis from Dec.

Detailed explanation-5: -The Reserve Bank of India (RBI) on Thursday proposed to extend the term-liquidity facility of Rs 50, 000 crore offered to emergency health services by three months till June 30, 2022.