Home › Circulars › RBI/2009-10/406

Repo Rate Hiked to 5.25%: Standing Liquidity Facilities Costlier

Current · Source: Reserve Bank of India · RBI/2009-10/406 · issued 20 Apr 2010 · ~1 min read
Quick answerRBI raised the repo rate by 25 bps to 5.25% effective April 20, 2010. Standing liquidity facilities for banks (export credit refinance) and Primary Dealers (collateralised liquidity support) will now be charged at this higher rate.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore, Mr. Kumar, noticed that the RBI raised the repo rate, making it costlier for banks to access standing liquidity. He advised his bank to review their reliance on these facilities and assess the impact on funding costs. ["Review the bank's reliance on standing liquidity facilities.", 'Assess the impact of the rate increase on funding costs.']

What changed

The repo rate under the Liquidity Adjustment Facility (LAF) was increased by 25 basis points from 5% to 5.25% with immediate effect. Consequently, the standing liquidity facilities provided to banks and Primary Dealers are now available at the revised repo rate of 5.25%.

What it means for you

Banks and Primary Dealers will face higher costs for accessing standing liquidity from the RBI, including export credit refinance and collateralised liquidity support. This rate hike signals a tightening of monetary policy, which may lead to higher lending rates and reduced liquidity in the banking system.

What you must do

Who it affects

All Scheduled Banks (excluding Regional Rural Banks), Primary Dealers

❓ Common questions

Regulatory timeline

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

What is the new repo rate effective from April 20, 2010?

The repo rate has been increased by 25 basis points from 5% to 5.25% with immediate effect.

Which liquidity facilities are impacted by this rate change?

Standing liquidity facilities for banks (export credit refinance) and Primary Dealers (collateralised liquidity support) are now available at the revised repo rate of 5.25%.

📜 Read the original circular — full text as issued by RBI
RBI/2009-10/406 REF.No.MPD.BC. 331/07.01.279/2009-10 April 20, 2010 To All Scheduled Banks (excluding Regional Rural Banks) and Primary Dealers Dear Sir/Madam, Standing Liquidity Facilities for Banks and Primary Dealers Please refer to the Monetary Policy Statement 2010-11 dated April 20, 2010, in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points from 5 per cent to 5.25 per cent with immediate effect. 2.  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 revised repo rate, i.e., at 5.25 per cent with effect from April 20, 2010. Yours faithfully, (Janak Raj) Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/406 · issued 20 Apr 2010. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamRisk ManagementSenior Management / BoardBusiness Head / Vertical HeadProduct Manager (Digital & Lending)
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Financial Markets Regulation
RBI Announces ₹1.25 Lakh Crore 2-Day VRR Auction on July 1Overnight VRR Auction Result: June 30, 2026RBI conducts ₹75,000 crore overnight VRR auction on June 30, 2026VRR Auction June 29, 2026: ₹75,021 Cr Allotted at 5.26%Overnight VRR Auction Result: July 29, 2026
Browse all departments →
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Banks (excluding Regional Rural Banks), Primary Dealers), your first concrete step on “Repo Rate Hiked to 5.25%: Standing Liquidity Facilities Costlier” is: “Review your bank's reliance on standing liquidity facilities and assess the impact of the 25 bps rate increase on funding costs.” (RBI issued this 20 Apr 2010).

  1. Circular: RBI/2009-10/406 -- Repo Rate Hiked to 5.25%: Standing Liquidity Facilities Costlier
  2. Issued: 20 Apr 2010
  3. Action required: Review your bank's reliance on standing liquidity facilities and assess the impact of the 25 bps rate increase on funding costs.
  4. Action required: Communicate the revised repo rate to treasury and ALM teams to update pricing models for loans and advances.
  5. Action required: Monitor RBI's future policy actions and adjust liquidity management strategies accordingly.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. 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.

Loading comments…
BankPulse Compliance Evidence Pack — generated 03 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=5604&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.
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 ↗
—