DBOD.No. FSC. BC. 102/24.76.002.98-99

October 30, 1998

Kartika 8, 1920 (Saka)

All Commercial Banks

Dear Sir,

Ready Forward Transactions (Repos) in Government and other Approved Securities

Please refer to item 38 of our Governor's circular MPD.BC.181/07.01.279/98-99 dated 30th October 1998. In the backdrop of the inter-bank liabilities having been exempted from the requirements of maintenance of CRR (except for the statutory minimum requirement of 3 per cent) and with a view to enabling banks and other participants in the repo market to adjust their liquidity in a more flexible manner, it has been decided to withdraw the restriction of the minimum period for ready-forward (repo) transactions in Treasury Bills of all maturities and notified Government of India dated securities effective from October 31, 1998.

2. The above instructions are issued by the Reserve Bank of India in exercise of powers conferred by Section 35A of the Banking Regulation Act, 1949.

 

Yours faithfully

(Radhe Shyam)

Additional Chief General Manager