Standing Liquidity Facilities for Banks and Primary Dealers

 RBI/2011-12/232

MPD.BC. 350/07.01.279/2011-12

October 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 Second Quarter Review of Monetary Policy 2011-12 on October 25, 2011, in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points from 8.25 per cent to 8.50 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 would be available at the revised repo rate, i.e., at 8.50 per cent with effect from October 25, 2011.

Yours faithfully,

(Janak Raj)

Adviser-in-Charge