RBI's Liquidity Management System Back Online After Technical Hiccup
Moneylife Digital Team 14 June 2024
The Reserve Bank of India (RBI) has restored functionality to its automated sweep-in and sweep-out (ASISO) system following a technical disruption.
 
The glitch, which occurred on RBI's ASISO facility within the e-Kuber platform, temporarily hindered Bank’s access on Wednesday. This platform plays a crucial role for banks in managing daily liquidity requirements, including parking funds at RBI's standing deposit facility and accessing funds via the marginal standing facility.
 
Typically, the money market operations statement, detailing the banking system's liquidity position, is released by 9 a.m daily. However, due to the incident, the release was delayed until 2 p.m.
 
RBI mandates banks to maintain a minimum of 4.5% of their net deposits with the central bank and ensure at least 90% compliance daily. Banks utilise RBI's marginal standing facility to meet liquidity needs as required.
 
Despite the disruption, treasury officials remained largely unfased as most banks maintain adequate cash reserves as per RBI regulations. The banks that managed their funding needs manually through the reverse repo and MSF windows were not impacted by the technical issue.
 
This marks the first failure of RBI's e-Kuber portal since its establishment in 2020, designed initially to optimise resource allocation during the Covid-19 pandemic.
 
The automated sweep-in and sweep-out (ASISO) facility, introduced to enhance operational flexibility for participants in the Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF), operates nightly to adjust balances automatically. However, on Tuesday, a technical issue prevented the expected debits and credits, as noted by treasury officials.
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