In order to mop up extra liquidity from the system in view of demonetisation, Reserve Bank has sharply raised the Market Stabilisation Scheme (MSS) ceiling to 6 lakh crore rupees from 30,000 crore rupees.<br/><br/>Economic Affairs Secretary Shaktikanta Das said in Mumbai that RBI will operate within that limit as per requirement, not as if the entire quantum of MSS would be utilised overnight. He said whatever liabilities come in this year we should be able to absorb it in Budget provisions for interest payment, which is there already in the Budget.<br/><br/>The Reserve Bank said in a notification that after the withdrawal of the legal tender character of the Rs 500/1,000 denomination notes with effect from November 9, there has been a surge in deposits with the banks. Consequently, there has been a significant increase of liquidity in the banking system that is expected to continue for some time, it said.<br/><br/>As part of liquidity management exercise, RBI last week asked lenders to temporarily maintain an incremental cash reserve ratio (CRR) of 100 per cent. CRR is the portion of the deposits banks are required to park with the Reserve Bank. The actual current rate of CRR is 4 per cent.