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Standing Liquidity Facilities for Banks and Primary Dealers

RBI/2010-11/257
MPD.No.BC.338 /07.01.279/2010-11

November 2, 2010

To

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

Dear Sir/Madam,

Standing Liquidity Facilities for
Banks and Primary Dealers

Please refer to the Second Quarter Review of Monetary Policy 2010-11 dated November 2, 2010, in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased  by 25 basis points from 6.0 per cent to 6.25 per cent with immediate effect.

2. Accordingly, the Standing Liquidity Facilities provided to banks (export credit refinance) and Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank will be available at the revised repo rate, i.e., at 6.25 per cent with effect from November 2, 2010.

Yours faithfully,

(Janak Raj)
Adviser-in-Charge

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