June 24, 2008

To

All Scheduled Banks [excluding Regional Rural Banks (RRBs)]
and Primary Dealers

Dear Sir,

Please refer to Financial Markets Department Circular FMD. MOAG No. /19 01.01.01/ 2007-08 dated June 24, 2008 on Liquidity Adjustment Facility – Repo and Reverse Repo Rates.

2. The fixed repo rate under the liquidity adjustment facility (LAF) has been revised to 8.50 per cent with immediate effect. Accordingly, the Standing Liquidity Facilities provided to banks (export credit refinance) and Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the repo rate, i.e., at 8.50 per cent with effect from June 25, 2008.

Yours faithfully,

(M.D. Patra)
Adviser-in-Charge