A liquidity mismatch in the banking system prompted the RBI to step in on Saturday and offer a two-day window to banks to tide over the situation. 
 

On Friday, rates in the collateralized borrowing and lending obligation (CBLO) — a facility through which banks can adjust their liquidity position — jumped to a record 76%. Because of this, the RBI intervened a day later by opening a half-hour window, a highly unusual step. 

In addition, on Saturday afternoon, the RBI said that it would conduct an additional marginal standing facility (MSF) — a liquidity adjustment mechanism. 

"The RBI decided to offer funds to the banks for two days through MSF on February 7, 2015 (Saturday)," a release said. Usually, the central bank does not offer such facilities on Saturdays. 

Dealers said that after starting at 8% rate, which was the going rate in the banking system, CBLO rates slowly spiked through the session and had touched an all-time high of 76%. However, they said that this was an aberration and CBLO rates are unlikely to remain even in double digits in the current week. (Times of India)