https://www.taxtmi.com/news?id=17102 RBI used an incremental Cash Reserve Ratio (later withdrawn), raised the Market Stabilisation Scheme limit to enable additional securities issuance, and employs fixed and variable repo/reverse repo operations to absorb excess liquidity. Liquidity is only one factor affecting lending rates; banks must compute base rates using the Marginal Cost of Funds and set their own Marginal Cost Lending Rate under RBI guidelines, with no direct government or RBI fixation of loan interest rates. en-us Sat, 17 Dec 2016 10:42:22 +0530 Sat, 17 Dec 2016 10:42:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=17102 RBI used an incremental Cash Reserve Ratio (later withdrawn), raised the Market Stabilisation Scheme limit to enable additional securities issuance, and employs fixed and variable repo/reverse repo operations to absorb excess liquidity. Liquidity is only one factor affecting lending rates; banks must compute base rates using the Marginal Cost of Funds and set their own Marginal Cost Lending Rate under RBI guidelines, with no direct government or RBI fixation of loan interest rates. News - Sat, 17 Dec 2016 10:42:22 +0530 https://www.taxtmi.com/news?id=17102