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
- Update treasury operations to participate in the daily SLAF auction between 4:15 PM and 4:45 PM.
- Ensure your bank's LAF/SLAF bidding systems and limits are aligned with existing circular terms.
- 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.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Primary Dealers, Treasury and liquidity management teams, Risk management departments
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.