On Thursday 6th August 2020 the RBI introduces an optional Automated Sweep-In and Sweep-Out (ASISO) facility in the digital platform e-Kuber system to help banks manage liquidity in the situation of COVID-19.
According to the ASISO facility, banks will be able to set the specific amount or range amount that they wish to keep as balances in their current accounts with the Reserve Bank of India at the end of the day.
The RBI said in a press release that “Depending upon this pre-set amount, Marginal Standing Facility (MSF) and reverse repo bids, as the case may be, will be generated automatically without any manual intervention at the end of the day.”
The introduction of the ASISO facility for end-of-the-day Liquidity Adjustment Facility (LAF) operations, the RBI said that “it will help banks to optimize human resource deployment in the context of disruptions caused by COVID-19 and to provide eligible LAF/MSF participants greater flexibility in managing their end-of-the-day Cash Reserve Ratio (CRR) balances.”
RBI also said that “participants eligible for availing LAF and MSF will have the option to use the ASISO facility with effect from August 6, 2020, and this facility is optional and is in addition to the existing mechanism of placing manual bids in the reverse repo and MSF windows through the e-Kuber portal.”
The RBI further said that “the facility to set or modify ranges for end-of-the-day current account balances will be available on all RTGS (real-time gross settlement) working days between 9:00 am and 11:30 pm.”
Participants using the ASISO facility and can set separate maximum and minimum balance limits (in rupee crore) for their current accounts linked to LAF and MSF operations.