<div>The Reserve Bank of India on Tuesday, 23 July announced further measures to tighten banking system liquidity and to stabilise the falling rupee.<br /><br />The RBI set the overall limit for borrowing under the daily liquidity adjustment facility (LAF) for each bank at 0.5 per cent of deposits, outstanding as of the last Friday of the reporting cycle two weeks prior to the current one.<br /><br />The central bank also said banks need to maintain 99 per cent of their daily cash reserve ratio requirements with the RBI, as against 70 percent now.<br /><br />Earlier, RBI failed to receive any bids at its second consecutive special repo auction for mutual funds on Tuesday.<br /><br />The central bank is offering the special repo facility at the Marginal Standing Facility (MSF) interest rate of 10.25 percent.<br /><br />Last week, the RBI had said it would offer a total of Rs 25,000 crore to banks for funding mutual funds through a special repo window to meet their liquidity needs.<br /><br />(Reuters)<br /> </div>
