MSS Ceiling Raised By Rs 20,000 Cr

Mumbai, Aug 26 | Updated: Aug 27 2004, 07:13am hrs
In a bid to check the ongoing inflationary trend in the economy, the Centre on Thursday increased the ceiling of the market stabilisation scheme (MSS) by Rs 20,000 crore to Rs 80,000 crore in the current fiscal.

The threshold level at which the ceiling would be reviewed in future, has also been raised from Rs 50,000 crore to Rs 70,000 crore, said the RBI.

The current indicative schedule for issuance of securities under MSS for the quarter July-September 2004 would remain unchanged, it added. As per the memorandum of understanding (MoU) inked in March between the Centre and RBI, there was a provision to revise the ceiling on MSS after crossing the Rs 50,000 crore mark. RBI said it notified the government that the outstanding under MSS has crossed the Rs 50,000 crore limit and suggested them to hike the overall ceiling by Rs 20,000 crore.