RBI/2009-10/192
FMD.MOAG.No.41/01.01.01/2009-10

October 27, 2009

All Scheduled Commercial Banks (excluding RRBs)
and Primary Dealers

Dear Sir,

SPECIAL TERM REPO FACILITY

Please refer to our circular FMD.MOAG.NO.35/01.01.01/2008-09 dated April 21, 2009 on the captioned subject.

2.  As announced in the Second Quarter Review of Monetary Policy 2009-10, it has been decided to discontinue the special term repo facility for scheduled commercial banks for funding to mutual funds, non-banking financial companies and housing finance companies with immediate effect.

3.  The outstanding liabilities of scheduled commercial banks under this facility shall not be rolled-over on maturity.

Yours sincerely,

(P. Krishnamurthy)
Chief General Manager