Special 14-Day Fixed Rate Repo: SLR Relief for NBFC/MF Funding
Current · Source: Reserve Bank of India · RBI/2008-09/258 · issued 03 Nov 2008 · ~1 min read
Quick answerRBI extends a temporary 14-day special term repo facility up to ₹60,000 crore outstanding, allowing banks to use SLR relaxation of up to 1.5% of NDTL exclusively for funding NBFCs and mutual funds.
The rule, in the simplest words
Banks can borrow extra money from RBI for 14 days at the repo rate (the rate RBI charges banks for loans).
To get this money, banks can use up to 1.5% of their NDTL (total deposits and borrowings) that they normally keep as SLR (government bonds).
This borrowed money must be used only to lend to NBFCs (non-bank finance companies) and MFs (mutual funds).
The total amount all banks can borrow under this special plan is capped at ₹60,000 crore at any time.
Banks can decide how to split the borrowed money between NBFCs and MFs based on their own business needs.
How it plays out — a real example
A treasury officer in Indore notices her bank has extra SLR bonds worth 1.5% of its deposits. She uses this special repo to borrow ₹10 crore from RBI for 14 days, then lends that money to a local NBFC that funds small businesses, helping the NBFC meet its urgent cash needs without disrupting her bank's regular operations.
What changed
RBI announced a daily special fixed rate repo of 14-day tenor under LAF, with a cumulative outstanding cap of ₹60,000 crore, effective until further notice. Banks can now flexibly allocate the total accommodation between NBFCs and MFs as per business needs.
What it means for you
Banks get additional liquidity support at the repo rate by dipping into SLR holdings up to 1.5% of NDTL, but only for lending to NBFCs and MFs. This eases funding pressure on non-bank financial intermediaries without expanding RBI's balance sheet permanently.
What you must do
Assess your SLR headroom to utilize up to 1.5% of NDTL for this special repo facility.
Ensure funds availed under this facility are deployed exclusively for NBFC and MF funding needs.
Monitor daily press releases for notified amounts, rates, and reversal dates of the special repo.
Coordinate with DBOD for operational guidelines on SLR relaxation modalities.
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the maximum amount I can avail under this special repo?
The facility is up to a cumulative outstanding amount of ₹60,000 crore across all banks, with each bank's limit determined by its SLR relaxation of up to 1.5% of NDTL.
Can I use the funds from this repo for general lending?
No, the SLR relaxation is exclusively for meeting funding requirements of NBFCs and MFs. Banks must ensure funds are deployed only for these entities.
Is this facility permanent?
No, it is purely temporary and ad-hoc, conducted daily until further notice. The tenor is 14 days, and details are announced each day via press release.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “as stated in our circular FMD.MOAG.No.29 /01.01.01/2008-09 dated November 03, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/258
FMD.MOAG. No. 29/01.01.01/2008-09
November 3, 2008
All Scheduled Commercial Banks (excluding RRBs)
and Primary Dealers
Dear Sir,
SPECIAL FIXED RATE REPO UNDER LIQUIDITY ADJUSTMENT FACILITY
Please refer to our circular FMD.MOAG. No. 26/01.01.01/2008-09 dated October 14, 2008 on the captioned subject.
2. As already announced, it has been decided to extend, on a purely temporary and ad-hoc basis, the special term repo facility and allow banks to avail liquidity support under the LAF at the extant repo rate through relaxation in the maintenance of SLR to the extent of up to 1.5 per cent of their NDTL. Further, this relaxation in SLR is to be used exclusively for the purpose of meeting the funding requirements of NBFCs and MFs. Banks can apportion the total accommodation allowed above between MFs and NBFCs flexibly as per their business needs.
3. Accordingly, Reserve Bank shall now conduct the special fixed rate term repo of 14 days’ tenor under Liquidity Adjustment Facility every day until further notice up to a cumulative amount of Rs 60,000 crore on outstanding basis. As hitherto, the details of the repo including the rate, the notified amount and the date of reversal shall be announced each day through a press release.
4. This repo will be in addition to the repo/reverse repo auctions conducted under Liquidity Adjustment Facility (LAF) and Second Liquidity Adjustment Facility (SLAF) which will be held as usual.
5. The other terms and conditions for the special repo would remain as notified by our earlier circulars on the Liquidity Adjustment Facility.
6. The modalities of operationalisation of the relaxation in maintenance of SLR are being advised separately by our Department of Banking Operations and Development.
Yours faithfully,
(Chandan Sinha)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/258 · issued 03 Nov 2008. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Commercial Banks (excluding RRBs), Primary Dealers, Non-Banking Financial Companies (NBFCs), Mutual Funds (MFs)), your first concrete step on “Special 14-Day Fixed Rate Repo: SLR Relief for NBFC/MF Funding” is: “Assess your SLR headroom to utilize up to 1.5% of NDTL for this special repo facility.” (RBI issued this 03 Nov 2008).
Circular: RBI/2008-09/258 -- Special 14-Day Fixed Rate Repo: SLR Relief for NBFC/MF Funding
Issued: 03 Nov 2008
Action required: Assess your SLR headroom to utilize up to 1.5% of NDTL for this special repo facility.
Action required: Ensure funds availed under this facility are deployed exclusively for NBFC and MF funding needs.
Action required: Monitor daily press releases for notified amounts, rates, and reversal dates of the special repo.
Action required: Coordinate with DBOD for operational guidelines on SLR relaxation modalities.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=4589&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.