July 29, 2008

To

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

Dear Sir/Madam,

Standing Liquidity Facilities for Banks and Primary Dealers

As announced in the First Quarter Review of Annual Statement on Monetary Policy for the Year 2008-09, the fixed repo rate under the Liquidity Adjustment Facility (LAF) was increased by 50 basis points from 8.5 per cent to 9.0 per cent with immediate effect (Paragraph 105).

2. Accordingly, the Standing Liquidity Facilities provided to banks (export credit refinance) and Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the repo rate, i.e., at 9.0 per cent with effect from July 29, 2008.

Yours faithfully,

(M.D. Patra)
Adviser-in-Charge