The Reserve Bank opened a special two-day funding window for banks through the marginal standing facility (MSF) today to help them meet liquidity needs as there would be higher demand for funds on account of advance tax payment.
"Given the market conditions, we have decided to offer two-day funds to banks through the marginal standing facility," an RBI release said here.
The MSF window will be open today between 5 pm and 5.30 pm and funds will be repayable on September 16.
Sunday is the last day for corporates and high income individuals to pay their advance tax.
The Banks borrowed a record Rs 73,602 crore from MSF window on September 11, according to the RBI data.
Earlier, on Friday, RBI had said all designated branches of agency banks would be open on Saturday and Sunday to facilitate collection of advance taxes for income tax and corporate tax from the public.
The RBI has designated bank branches of State Bank and other public sector banks, HDFC Bank, ICICI Bank, Axis Bank, IDBI Bank and Kotak Mahindra Bank to collect advance tax payments.