RBI/2008-09/266
RPCD.PLFS . No. BC. 60 /05.04.02/2008-09          

November 3, 2008

The Chairmen/Chief Executives of
all Scheduled  Banks / NABARD

Dear Sirs,

Temporary liquidity support for financing agricultural operations

Please refer to our circular RPCD.PLFS. No. BC.  45 /05.04.02/2008-09  dated October 15, 2008, on the captioned subject.

2. Reserve Bank has since decided to extend the facility of temporary liquidity support for financing agricultural operations, as mentioned therein, for a period up to December 5, 2008. The rate of interest on the temporary liquidity support, as mentioned therein, has also been revised. Accordingly, the rate of interest on the above facility would be the prevailing fixed repo rate under LAF.

3. All other conditions of the above circular remain unchanged.

Yours faithfully,

(B.P. Vijayendra)
Chief General Manager