Home › Circulars › RBI/2009-10/478

RBI Introduces Second Liquidity Adjustment Facility (SLAF)

Current · Source: Reserve Bank of India · RBI/2009-10/478 · issued 28 May 2010 · ~1 min read
Quick answerRBI launched a daily Second Liquidity Adjustment Facility (SLAF) from May 28 to July 2, 2010, as a liquidity easing measure. SLAF auctions run between 4:15 PM and 4:45 PM. All other LAF terms remain unchanged.

What changed

RBI announced a temporary daily SLAF window effective May 28, 2010, through July 2, 2010, as part of liquidity easing measures announced on May 26, 2010. The SLAF auctions are scheduled between 4:15 PM and 4:45 PM each day. All other terms and conditions of the existing LAF and SLAF remain as per earlier circulars.

What it means for you

Banks and primary dealers get an additional daily window to manage end-of-day liquidity mismatches, improving their ability to square positions. This extra facility reduces overnight funding risk and supports smoother liquidity management during the period. The temporary nature suggests RBI's intent to address short-term stress without permanent policy change.

What you must do

Who it affects

All Scheduled Commercial Banks (excluding RRBs), Primary Dealers, Treasury and liquidity management teams, Risk management departments

❓ 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 timing of the SLAF auction?

The SLAF auction is conducted daily between 4:15 PM and 4:45 PM, effective from May 28, 2010, until July 2, 2010.

Are the terms for SLAF different from the regular LAF?

No, the circular states that all other terms and conditions for LAF and SLAF remain as notified in earlier circulars.

Who is eligible to participate in the SLAF?

All Scheduled Commercial Banks (excluding Regional Rural Banks) and Primary Dealers are eligible to participate.

📜 Read the original circular — full text as issued by RBI
RBI/2009-10/478 FMD.MOAG. No.44 /01.01.01/2009-10 May 28, 2010 All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers Dear Sir, SECOND LIQUIDITY ADJUSTMENT FACILITY As part of the liquidity easing measures announced by the RBI on May 26, 2010, it has been decided to conduct a second Liquidity Adjustment Facility (SLAF), on a daily basis, with effect from May 28, 2010 up to July 2, 2010. 2. The SLAF will be conducted between 4.15 p.m. and 4.45 p.m. 3. The other terms and conditions for LAF/ SLAF remain as notified by our earlier circulars. Yours sincerely, (P. Krishnamurthy) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/478 · issued 28 May 2010. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
🛠 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 →
Who does what — compliance checklist
⚙️ Operations
  • Update treasury operations to participate in the daily SLAF auction between 4:15 PM and 4:45 PM.
💻 IT / Systems
  • Ensure your bank's LAF/SLAF bidding systems and limits are aligned with existing circular terms.
📜 Compliance
  • Monitor liquidity positions closely to leverage the extra window for end-of-day adjustments.
  • Communicate the SLAF timing and temporary validity (till July 2, 2010) to relevant treasury and risk teams.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an Operations officer at a bank this circular applies to (All Scheduled Commercial Banks (excluding RRBs), Primary Dealers, Treasury and liquidity management teams, Risk management departments), your first concrete step on “RBI Introduces Second Liquidity Adjustment Facility (SLAF)” is: “Update treasury operations to participate in the daily SLAF auction between 4:15 PM and 4:45 PM.” (RBI issued this 28 May 2010).

  1. Circular: RBI/2009-10/478 -- RBI Introduces Second Liquidity Adjustment Facility (SLAF)
  2. Issued: 28 May 2010
  3. Action required: Update treasury operations to participate in the daily SLAF auction between 4:15 PM and 4:45 PM.
  4. Action required: Ensure your bank's LAF/SLAF bidding systems and limits are aligned with existing circular terms.
  5. Action required: Monitor liquidity positions closely to leverage the extra window for end-of-day adjustments.
  6. Action required: Communicate the SLAF timing and temporary validity (till July 2, 2010) to relevant treasury and risk teams.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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=5698&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 ↗
—