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RBI allows reversal of liquidity facilities under SDF and MSF even on weekends, holidays

The Reserve Bank of India (RBI) has adjusted liquidity tools, the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF), allowing reversal of facilities on weekends and holidays from December 30. The move aims to improve liquidity management amid high utilization by banks. The RBI maintained the repo rate at 6.5% Governor Shaktikanta Das mentioned that deficit liquidity was due to festive season expenses but anticipates easing conditions with increased government spending. The RBI remains agile in liquidity management amid evolving economic dynamics, the governor said.

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