RBI Extends Special Refinance Facility Till March 2010
Current · Source: Reserve Bank of India · RBI/2008-09/450 · issued 22 Apr 2009 · ~2 min read
Quick answerRBI has extended the Special Refinance Facility (SRF) under Section 17(3B) of the RBI Act until March 31, 2010. Banks can access refinance up to 1% of NDTL at the repo rate for up to 90 days, providing continued liquidity support.
The rule, in the simplest words
Banks can get extra money [refinance] from RBI up to 1% of their total liabilities [NDTL] at a fixed interest rate [repo rate] for up to 90 days
This special money help [SRF] is available until March 31, 2010, to support banks with their money needs [liquidity pressures]
Banks can use this facility to plan their short-term money needs with more certainty
The money borrowed [refinance] can be drawn and repaid flexibly within the 90-day time frame
How it plays out — a real example
A treasury officer in Mumbai can use this extended Special Refinance Facility to manage their bank's short-term funding needs, ensuring they have enough money to lend to customers without having to borrow from more expensive sources. This helps the officer plan the bank's liquidity more effectively and make better decisions about lending and borrowing. By having access to this facility, the treasury officer can also help the bank maintain its financial stability and support the overall economy.
What changed
The SRF, which was set to expire on September 30, 2009, has now been extended to March 31, 2010. This extension follows the announcement in the Annual Policy Statement for 2009-10 on April 21, 2009. All other terms—1% of NDTL, repo rate pricing, and 90-day maximum tenor—remain unchanged.
What it means for you
Banks get an additional six months of access to cheap refinance from RBI, helping them manage liquidity pressures without resorting to costlier sources. This extension signals RBI's continued accommodative stance amid the post-2008 crisis recovery. Lenders can plan their short-term funding needs with greater certainty through March 2010.
What you must do
Update internal liquidity management plans to factor in SRF availability until March 31, 2010.
Ensure your bank's NDTL as on October 24, 2008 is correctly computed to determine the eligible refinance amount.
Continue to draw and repay refinance flexibly within the 90-day window as per your liquidity needs.
Monitor RBI circulars for any further changes to the facility terms.
Who it affects
All scheduled commercial banks (excluding RRBs), Treasury and ALM teams of banks, Banks relying on short-term liquidity support from RBI
❓ Common questions
What is the maximum amount of refinance a bank can avail under this facility?
A bank can avail refinance equivalent to up to 1.0% of its net demand and time liabilities (NDTL) as on October 24, 2008.
What is the interest rate charged on this refinance?
The refinance is provided at the repo rate under the Liquidity Adjustment Facility (LAF) prevailing at the time of drawal.
Can we draw and repay the refinance multiple times within the 90-day period?
Yes, the facility allows flexible drawing and repayment within a maximum period of 90 days.
📜 Read the original circular — full text as issued by RBI
Please refer to our circulars Ref. No. MPD.BC.309 /02.01.009/2008-09 dated November 3, 2008, MPD. BC. 312 /02.01.009/2008-09 dated December 01, 2008 and MPD.BC.318 /02.01.009/2008-09 dated January 27, 2009 on the Special Refinance Facility (SRF) under Section 17(3B) of the Reserve Bank of India Act, 1934.
2. Under this facility, scheduled commercial banks (excluding regional rural banks) are provided refinance from the Reserve Bank equivalent to up to 1.0 per cent of each bank's net demand and time liabilities (NDTL) as on October 24, 2008 at the repo rate under the liquidity adjustment facility (LAF) up to a maximum period of 90 days during which refinance can be flexibly drawn and repaid. This facility was available up to September 30, 2009.
3. As indicated in the Annual Policy Statement for 2009-10 announced on April 21, 2009, it has been decided to extend this facility up to March 31, 2010.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/450 · issued 22 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), Treasury and ALM teams of banks, Banks relying on short-term liquidity support from RBI), your first concrete step on “RBI Extends Special Refinance Facility Till March 2010” is: “Update internal liquidity management plans to factor in SRF availability until March 31, 2010.” (RBI issued this 22 Apr 2009).
Circular: RBI/2008-09/450 -- RBI Extends Special Refinance Facility Till March 2010
Issued: 22 Apr 2009
Action required: Update internal liquidity management plans to factor in SRF availability until March 31, 2010.
Action required: Ensure your bank's NDTL as on October 24, 2008 is correctly computed to determine the eligible refinance amount.
Action required: Continue to draw and repay refinance flexibly within the 90-day window as per your liquidity needs.
Action required: Monitor RBI circulars for any further changes to the facility terms.
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
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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=4946&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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