IDMC.PDRS.No. 87 /03.64.00/2001-02
05 July 2001
All Primary Dealers
Dear Sir,
Liquidity Support to Primary Dealers
Please refer to paragraph 2 of our circular IDMC.No.4135/03.64.00/2000-01 dated April 19, 2001 on 'Scheme for Liquidity Support to Primary Dealers'. Clause (a) of paragraph 2 of the said circular states that Level-1 Liquidity Support has been split into normal facility and backstop facility. While the normal facility is available at Bank Rate (BR), backstop facility is available at a Daily Variable Rate (DVR) as announced by RBI on day-to-day basis.
It has now been decided that in case of default in repayment of Liquidity Support availed of by a Primary Dealer within the stipulated period of 90 days, penal rate of interest as indicated below would be applicable with immediate effect: -
|
Liquidity Support |
Penal Rate beyond 90th day till date of repayment |
|
1. Normal Facility |
BR + 5 percentage points |
|
2. Backstop Facility |
DVR + 3 percentage points |
All other terms and conditions of our aforesaid circular shall remain unchanged.
Yours faithfully,
Chandan Sinha
General Manager |