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.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Primary Dealers, Non-Banking Financial Companies (NBFCs), Mutual Funds (MFs)
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.