Standing Liquidity Facilities for Banks and Primary Dealers

Reserve Bank of India

RBI/2010-11/386

REF.No.MPD.BC.340/07.01.279/2010-11

January 25, 2011

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 Third Quarter Review of Monetary Policy 2010-11 dated January 25, 2011, in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points from 6.25 per cent to 6.50 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 6.50 per cent with effect from January 25, 2011.

Yours faithfully,

(Janak Raj)
Adviser-in-Charge