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Standing Liquidity Facilities for Banks and Primary Dealers

RBI/2005-06/287
REF.No.MPD.BC. 278 /07.01.279/2005-06

January 24, 2006

To

All Scheduled Banks [excluding Regional Rural Banks (RRBs)] and Primary Dealers

Dear Sirs,

Standing Liquidity Facilities for Banks and Primary Dealers

Please refer to para 71 of the Third Quarter Review of Annual Statement on Monetary Policy for the year 2005-06.

2. The fixed repo rate under LAF has been revised to 6.50 per cent effective 12.00 noon, January 24, 2006. Accordingly, the Standing Liquidity Facilities provided to Banks (export credit eligible for refinance) and Primary Dealers (PDs) (collateralised liquidity support) from RBI would be available at repo rate i.e. 6.50 per cent effective 12.00 noon, January 24, 2006.

Yours faithfully,
(K. Kanagasabapathy)
Adviser-in-Charge


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