Home › Circulars › RBI/2007-2008/380

Standing Liquidity Facilities Rate Hiked to 8.50%

Current · Source: Reserve Bank of India · RBI/2007-2008/380 · issued 24 Jun 2008 · ~1 min read
Quick answerRBI raised the fixed repo rate under LAF to 8.50% effective June 25, 2008. Standing liquidity facilities for banks (export credit refinance) and Primary Dealers (collateralised liquidity support) will now be available at this new repo rate.
The rule, in the simplest words
How it plays out — a real example

As a forex & trade-finance officer in Indore, I need to recalculate the interest costs for our export credit refinance outstanding at the new 8.50% rate. This will help me update our internal pricing models for loans linked to export credit refinance and communicate the rate change to our treasury and credit teams for liquidity planning.

What changed

The fixed repo rate under the Liquidity Adjustment Facility (LAF) was revised upward to 8.50% with immediate effect. Consequently, the Standing Liquidity Facilities—export credit refinance for banks and collateralised liquidity support for Primary Dealers—will be priced at the new repo rate from June 25, 2008.

What it means for you

Banks and Primary Dealers will face higher borrowing costs for these specific liquidity windows, as the rate aligns with the revised repo rate. This move signals tighter monetary conditions, potentially increasing banks' funding costs for export credit and requiring PDs to reassess their liquidity management strategies.

What you must do

Who it affects

All Scheduled Banks (excluding RRBs) availing export credit refinance, Primary Dealers using collateralised liquidity support

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

When does the new 8.50% rate take effect?

The revised repo rate of 8.50% is effective from June 25, 2008, as per the circular dated June 24, 2008.

Does this change affect all LAF operations?

The circular specifically applies to Standing Liquidity Facilities—export credit refinance for banks and collateralised liquidity support for PDs—aligning them with the new repo rate.

📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/380 REF.No.MPD.BC. 301/07.01.279/2007-08 June 24, 2008 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 Financial Markets Department Circular FMD. MOAG No. /19 01.01.01/ 2007-08 dated June 24, 2008 on Liquidity Adjustment Facility – Repo and Reverse Repo Rates. 2. The fixed repo rate under the liquidity adjustment facility (LAF) has been revised to 8.50 per cent with immediate effect. 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 8.50 per cent with effect from June 25, 2008. Yours faithfully, (M.D. Patra) Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/380 · issued 24 Jun 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Monitor LAF operations closely for any further rate adjustments.
💻 IT / Systems
  • Communicate the rate change to treasury and credit teams for liquidity planning.
📜 Compliance
  • Review your bank's export credit refinance outstanding and recalculate interest costs at the new 8.50% rate.
  • Update internal pricing models for loans linked to export credit refinance to reflect the higher cost.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Banks (excluding RRBs) availing export credit refinance, Primary Dealers using collateralised liquidity support), your first concrete step on “Standing Liquidity Facilities Rate Hiked to 8.50%” is: “Review your bank's export credit refinance outstanding and recalculate interest costs at the new 8.50% rate.” (RBI issued this 24 Jun 2008).

  1. Circular: RBI/2007-2008/380 -- Standing Liquidity Facilities Rate Hiked to 8.50%
  2. Issued: 24 Jun 2008
  3. Action required: Review your bank's export credit refinance outstanding and recalculate interest costs at the new 8.50% rate.
  4. Action required: Update internal pricing models for loans linked to export credit refinance to reflect the higher cost.
  5. Action required: Communicate the rate change to treasury and credit teams for liquidity planning.
  6. Action required: Monitor LAF operations closely for any further rate adjustments.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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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=4253&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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