RBI/2008-09/ 360
Ref.No.MPD.BC.318/02.01.009/2008-09

January 27, 2009

All Scheduled Commercial Banks
(excluding Regional Rural Banks)

Dear Sir/Madam,

Re: Special Refinance Facility (SRF) under Section
17(3B) of the Reserve Bank of India Act, 1934

Please refer to our circulars Ref.No.MPD.BC.309/02.01.009/2008-09 dated November 3, 2008 and MPD.BC.312/02.01.009/2008-09 dated December 01, 2008 on the Special Refinance Facility (SRF) under Section 17(3B) of the Reserve Bank of India Act, 1934 under which all scheduled commercial banks (excluding RRBs) are provided refinance from the Reserve Bank equivalent to up to 1.0 per cent of each bank's net demand and time liabilities (NDTL) as on October 24, 2008 at the repo rate under the liquidity adjustment facility (LAF) up to a maximum period of 90 days during which refinance can be flexibly drawn and repaid.  This facility was available up to June 30, 2009.

2. As indicated in the Third Quarter Review of Monetary Policy for 2008-09 announced on January 27, 2009, it has been decided to extend this facility up to September 30, 2009.

Yours faithfully,

   (Janak Raj)
Adviser-in-Charge