No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2005-06/405 · issued 09 Jun 2006 · ~1 min read
Quick answerRBI raised the fixed repo rate under LAF to 6.75% effective June 9, 2006. Consequently, standing liquidity facilities for banks (export credit refinance) and primary dealers (collateralised liquidity support) are now available at this higher rate.
What changed
The fixed repo rate under the Liquidity Adjustment Facility was revised upward to 6.75% with immediate effect. This change aligns the standing liquidity facilities for banks and primary dealers with the new repo rate.
What it means for you
Banks and primary dealers will now pay a higher cost for accessing standing liquidity from RBI, directly impacting their short-term funding costs. This rate hike signals a tightening of monetary policy, likely aimed at controlling inflation or managing liquidity conditions.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your internal pricing models for short-term borrowing to reflect the new 6.75% repo rate.
Reassess the cost of export credit refinance and collateralised liquidity support in your treasury operations.
Communicate the rate change to your treasury and risk management teams for immediate implementation.
Monitor RBI's future policy signals to anticipate further rate adjustments.
Who it affects
All scheduled banks (excluding RRBs), Primary dealers, Treasury departments of banks and PDs
❓ Common questions
Regulatory timeline
Stated effective dateeffective June 9, 2006
Decoded by BankPulse2026-06-19 18:31 IST
Status change: withdrawn09 Jul 2026, 04:07 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the effective date of the new repo rate?
The revised repo rate of 6.75% is effective from June 9, 2006, as per the circular.
Does this change affect all standing liquidity facilities?
Yes, the standing liquidity facilities for banks (export credit refinance) and primary dealers (collateralised liquidity support) are now available at the new repo rate of 6.75%.
Are Regional Rural Banks (RRBs) covered by this circular?
No, the circular explicitly excludes Regional Rural Banks from its scope.
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/405
REF.No.MPD.BC. 281 /07.01.279/2005-06
June 9, 2006
To
All Scheduled Banks [excluding Regional Rural
Banks (RRBs)]
and Primary Dealers
Dear Sir,
Standing Liquidity Facilities for Banks and Primary
Dealers
Please refer to FMD Circular FMD.
MO. AG. No. 5 /01.01.01/2005-06 dated June 8, 2006 on Liquidity Adjustment
Facility – Repo and Reverse Repo Rates.
2. The fixed repo rate under LAF has been revised
to 6.75 per cent with immediate effect. 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. 6.75 per cent with effect from June 9, 2006.
Yours faithfully,
(A. B. Chakraborty)
Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/405 · issued 09 Jun 2006. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2899&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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