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Repo Rate Hiked to 5.75%: Standing Liquidity Facilities Priced Higher

Current · Source: Reserve Bank of India · RBI/2010-11/140 · issued 27 Jul 2010 · ~1 min read

Quick answerRBI raised the repo rate by 25 bps to 5.75% effective July 27, 2010. Consequently, standing liquidity facilities for banks (export credit refinance) and Primary Dealers will now be available at the revised repo rate.

The rule, in the simplest words

The RBI (India's central bank) raised the repo rate (the interest rate at which it lends money to banks) from 5.50% to 5.75% on July 27, 2010.
Banks and Primary Dealers (special financial firms that buy and sell government bonds) now have to pay 5.75% interest when they borrow money from the RBI using standing liquidity facilities (special loan programs).
This change affects export credit refinance (loans banks get for giving export loans) and collateralised liquidity support (loans backed by securities for Primary Dealers).
The higher rate makes borrowing more expensive for banks and Primary Dealers, so they need to plan their cash and loans more carefully.

How it plays out — a real example

A forex & trade-finance officer in Indore, Priya, checks her bank's daily cash report and sees that the treasury team has updated the system to charge 5.75% interest on any export credit refinance borrowed from the RBI. She now tells her branch manager that the cost of funding for new export loans has gone up, so they must adjust the interest rates they offer to local exporters to keep the bank's profits stable.

What changed

The repo rate under the Liquidity Adjustment Facility (LAF) was increased by 25 basis points from 5.50% to 5.75% with immediate effect. Standing liquidity facilities provided to banks (export credit refinance) and Primary Dealers (collateralised liquidity support) are now priced at the revised repo rate of 5.75%.

What it means for you

Banks and Primary Dealers will face higher borrowing costs for these standing facilities, directly impacting their liquidity management and net interest margins. This move signals RBI's intent to tighten monetary policy to contain inflationary pressures, prompting lenders to reassess their funding strategies and loan pricing.

What you must do

Update internal systems to reflect the new repo rate of 5.75% for all standing liquidity facility transactions effective July 27, 2010.
Communicate the revised pricing to treasury and ALM teams to recalibrate liquidity and funding cost projections.
Review loan and deposit pricing strategies in light of the rate hike to manage net interest margins.
Monitor RBI's future policy actions and adjust liquidity buffers accordingly.

Who it affects

All Scheduled Banks (excluding RRBs), Primary Dealers, Treasury and ALM departments of banks, Borrowers of export credit refinance

❓ Common questions

Regulatory timeline

Stated effective date effective July 27, 2010
Decoded by BankPulse 2026-06-19 04:47 IST

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

What is the effective date of the repo rate hike?

The repo rate increase to 5.75% is effective from July 27, 2010, as announced in the First Quarter Review of Monetary Policy 2010-11.

Which facilities are impacted by this change?

The standing liquidity facilities for banks (export credit refinance) and Primary Dealers (collateralised liquidity support) are now priced at the revised repo rate of 5.75%.

Are Regional Rural Banks (RRBs) affected by this circular?

No, the circular explicitly excludes Regional Rural Banks (RRBs) from its scope.

📜 Read the original circular — full text as issued by RBI

RBI/2010-11/140

 REF.No.MPD.BC. 335 /07.01.279/2010-11 

 July 27, 2010

 To

 All Scheduled Banks [excluding Regional Rural Banks (RRBs)]

 and Primary Dealers

 Dear Sir/Madam, 

 Standing Liquidity Facilities for 

 Banks and Primary Dealers 

 Please refer to the First Quarter Review of Monetary Policy 2010-11 dated July 27, 2010 , in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points from 5.50 per cent to 5.75 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 5.75 per cent with effect from July 27, 2010.

 Yours faithfully,

 (Janak Raj)

 Adviser-in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/140 · issued 27 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Update internal systems to reflect the new repo rate of 5.75% for all standing liquidity facility transactions effective July 27, 2010.

📜 Compliance

Communicate the revised pricing to treasury and ALM teams to recalibrate liquidity and funding cost projections.
Review loan and deposit pricing strategies in light of the rate hike to manage net interest margins.
Monitor RBI's future policy actions and adjust liquidity buffers accordingly.

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 IT/Systems lead at a bank this circular applies to (All Scheduled Banks (excluding RRBs), Primary Dealers, Treasury and ALM departments of banks, Borrowers of export credit refinance), your first concrete step on “Repo Rate Hiked to 5.75%: Standing Liquidity Facilities Priced Higher” is: “Update internal systems to reflect the new repo rate of 5.75% for all standing liquidity facility transactions effective July 27, 2010.” (RBI issued this 27 Jul 2010).

Circular: RBI/2010-11/140 -- Repo Rate Hiked to 5.75%: Standing Liquidity Facilities Priced Higher
Issued: 27 Jul 2010
Action required: Update internal systems to reflect the new repo rate of 5.75% for all standing liquidity facility transactions effective July 27, 2010.
Action required: Communicate the revised pricing to treasury and ALM teams to recalibrate liquidity and funding cost projections.
Action required: Review loan and deposit pricing strategies in light of the rate hike to manage net interest margins.
Action required: Monitor RBI's future policy actions and adjust liquidity buffers accordingly.
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.

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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=5906&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.