Special Term Repo Facility Extended Till March 2010
Current · Source: Reserve Bank of India · RBI/2008-09/444 · issued 21 Apr 2009 · ~2 min read
Quick answerRBI extends the special 14-day term repo facility for banks until March 31, 2010, with weekly auctions from April 27, 2009, up to Rs 60,000 crore outstanding. This supports liquidity for mutual funds, NBFCs, and HFCs.
The rule, in the simplest words
Banks can borrow money from RBI for 14 days every Monday until March 31, 2010, up to a total of Rs 60,000 crore (60,000 crores of rupees) at a time.
Banks can use up to 1.5% of their deposits (NDTL) as extra cash to lend to mutual funds (MFs), non-bank finance companies (NBFCs), and housing finance companies (HFCs).
Until April 24, 2009, banks can borrow every day, but the loan must be paid back on April 27, 2009.
RBI will announce the loan details (rate, amount, and repayment date) every Monday in a press release.
How it plays out — a real example
An NBFC compliance officer in Indore checks her calendar every Monday morning to see RBI's press release for the special 14-day repo auction. She borrows Rs 10 crore at the repo rate, using the SLR relaxation (extra cash from deposits) to lend to a local NBFC that needs funds for vehicle loans, ensuring her bank meets liquidity needs smoothly.
What changed
The special term repo facility, previously available daily, will now be conducted as a weekly 14-day fixed rate term repo every Monday from April 27, 2009, until March 31, 2010. The cumulative outstanding amount is capped at Rs 60,000 crore. Until April 24, 2009, the facility remains daily with a fixed reversal on April 27, 2009.
What it means for you
Banks get continued access to liquidity support at the repo rate, with SLR relaxation up to 1.5% of NDTL, for on-lending to mutual funds, NBFCs, and HFCs. The weekly auction schedule streamlines operations but requires banks to plan their liquidity needs weekly. The extended timeline until March 2010 signals RBI's commitment to supporting credit flow to these sectors.
What you must do
Adjust your liquidity management to align with weekly Monday auctions from April 27, 2009.
Ensure SLR relaxation up to 1.5% of NDTL is utilized for lending to MFs, NBFCs, and HFCs as per business needs.
Monitor RBI press releases every Monday for notified amounts, rates, and reversal dates.
Prepare for seamless transition: use daily facility until April 24, 2009, with reversal on April 27, 2009.
What is the maximum amount I can avail under this special term repo facility?
The cumulative outstanding amount across all banks is capped at Rs 60,000 crore. Individual bank limits depend on SLR relaxation up to 1.5% of NDTL.
How often will these auctions be held?
Starting April 27, 2009, auctions will be held every Monday. If Monday is a holiday, the reversal occurs on the next working day.
Can I use this facility for incremental or rollover borrowing?
Yes, banks can avail the facility on either an incremental or rollover basis, as per earlier circulars.
📜 Read the original circular — full text as issued by RBI
Please refer to our circular FMD.MOAG. No. 30/01.01.01/2008-09 dated November 17, 2008 and Press Release dated November 28, 2008 allowing 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 and apportioning such accommodation between MFs, NBFCs, and HFCs flexibly as per their business requirements. Banks can avail of this facility either on incremental or on rollover basis.
2. As announced in the Annual Policy Statement for the year 2009-10, it has been decided to extend the time for availability of the special term repo facility for banks up to March 31, 2010 as also to conduct these 14-day term repo auctions on a weekly basis.
3. Accordingly, with effect from April 27, 2009 (Monday), Reserve Bank shall now conduct the special 14-day fixed rate term repo every Monday till March 31, 2010 up to a cumulative amount of Rs 60,000 crore on outstanding basis. The details of the repo including the rate, the notified amount and the date of reversal shall be announced every Monday through a press release. In case any Monday is a holiday, the reversal shall take place on the next working day.
4. However, with a view to enabling seamless transition to the new schedule, this facility will be available daily as hitherto till April 24, 2009, but with a fixed date reversal of April 27, 2009 (Monday).
5. The other terms and conditions for the special repo would remain as notified by our earlier circulars on the Liquidity Adjustment Facility.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/444 · issued 21 Apr 2009. 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, Mutual Funds (MFs), Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs)), your first concrete step on “Special Term Repo Facility Extended Till March 2010” is: “Adjust your liquidity management to align with weekly Monday auctions from April 27, 2009.” (RBI issued this 21 Apr 2009).
Circular: RBI/2008-09/444 -- Special Term Repo Facility Extended Till March 2010
Issued: 21 Apr 2009
Action required: Adjust your liquidity management to align with weekly Monday auctions from April 27, 2009.
Action required: Ensure SLR relaxation up to 1.5% of NDTL is utilized for lending to MFs, NBFCs, and HFCs as per business needs.
Action required: Monitor RBI press releases every Monday for notified amounts, rates, and reversal dates.
Action required: Prepare for seamless transition: use daily facility until April 24, 2009, with reversal on April 27, 2009.
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=4942&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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