1.1 The PDO-NDS will now enable Scheduled Commercial Banks (excluding RRBs) and Primary Dealers to offer SDLs as eligible securities to the Reserve Bank under the LAF-Repos. A margin of 10 per cent will be applied in respect of SDLs i.e. a Repo bid for Rs.100 will have to be backed by Rs.110 (face value) of SDLs. In case a member offers a combination of Central Government Securities/ Treasury Bills and SDLs, the availability of Central Government Securities and Treasury Bills in the RC SGL Account will be reckoned first ( with margin of 5%) and thereafter the residual amount met with the SDLs available in the RC SGL Account (with margin of 10%).

1.2 The transfer of securities from the SGL Account to the RC SGL account and vice-versa can now be made by the member through RC Transfer or RC Withdrawal (under Transfer Order Booking functionality) in the LAF module without obtaining the approval of PAD (Securities Section). In view of this, members are not required to fax the physical SGL Form to PAD (Securities Section) for effecting RC Transfer or RC Withdrawal. However, the balance available in the RC SGL account cannot be utilized for any transaction other than LAF, as hitherto.

 Yours faithfully