Special Term Repo Facility discontinued

Last updated: 06 November 2009

Notice Date : 05 November 2009

Special Term Repo Facility discontinued

RBI/2009-10/207
Ref: DBOD.Ret.BC.No.56/12.02.001/2009-10

November 05, 2009

All Scheduled Commercial Banks
(Excluding Regional Rural Banks)

Dear Sir,

Section 24 of the Banking Regulation Act, 1949-
Shortfall in Maintenance of Statutory Liquidity Ratio (SLR)-
Additional Liquidity Support under Liquidity Adjustment Facility (LAF)

Please refer to paragraph 2 of our circular DBOD. No. Ret. BC. 74/12.02.001/2008-09 dated November 03, 2008 and RBI Press Release 2008-2009 dated November 28, 2008 on the captioned subject.

Following the issuance of the RBI Circular FMD. MOAG. No. 41/01.01.01/2009-10 dated October 27, 2009 discontinuing the special term repo facility for scheduled commercial banks for funding to mutual funds, non-banking financial companies and housing finance companies, the relaxation in the maintenance of SLR to the extent of up to 1.5 per cent of their net demand and time liabilities (NDTL) stands withdrawn with effect from October 27, 2009.

Yours faithfully,

(Vinay Baijal)
Chief General Manager