The Reserve Bank of India vide notification dated October 4 2019 announced the Statement on Developmental and Regulatory Policies, in order to facilitate smooth settlement of NEFT transactions in the accounts of the member banks maintained with RBI. In furtherance of this, it has been decided to provide an additional collateralised intra-day liquidity facility, to be called Liquidity Support (LS).
LS facility will be available for facilitating NEFT settlements, on 24×7 basis. The LS facility will operate as per the same terms and conditions as the Intra-Day Liquidity (IDL) facility. All member banks eligible for the IDL facility will be eligible to avail of the LS facility. The limit for LS facility would be set by the Reserve Bank from time to time.
Click here to read the Notification.
