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Repo Rate Hiked to 6%: Standing Liquidity Facilities Costlier

Current · Source: Reserve Bank of India · RBI/2010-11/202 · issued 16 Sep 2010 · ~1 min read
Quick answerRBI raised the repo rate by 25 bps to 6.0% effective September 16, 2010. Consequently, standing liquidity facilities for banks (export credit refinance) and primary dealers (collateralised liquidity support) will now be charged at the revised repo rate of 6.0%.
The rule, in the simplest words
How it plays out — a real example

Ramesh, a senior treasury manager at a scheduled bank in Mumbai, looks at the RBI’s latest circular and sees the repo rate is now 6.0%. He updates the bank’s funding cost sheet, tells the ALCO team that the cost of export‑credit refinance has risen, and plans to adjust the loan rates offered to exporters so the bank keeps its profit margin.

What changed

The repo rate under the Liquidity Adjustment Facility was increased by 25 basis points from 5.75% to 6.0% with immediate effect. Accordingly, the standing liquidity facilities provided to banks and primary dealers are now priced at the new repo rate of 6.0%.

What it means for you

Banks and primary dealers will face higher costs for accessing standing liquidity from the RBI, as the rate for export credit refinance and collateralised liquidity support has risen. This move signals tighter monetary policy, potentially leading to higher lending rates and reduced liquidity in the banking system.

What you must do

Who it affects

All scheduled banks (excluding RRBs), Primary dealers, Borrowers relying on export credit refinance

❓ 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 September 16, 2010?

The repo rate has been increased by 25 basis points to 6.0%.

Which liquidity facilities are impacted by this change?

The standing liquidity facilities for banks (export credit refinance) and primary dealers (collateralised liquidity support) are now available at the revised repo rate of 6.0%.

📜 Read the original circular — full text as issued by RBI
RBI/2010-11/202 REF.No.MPD.BC. 336 /07.01.279/2010-11 September 16, 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 Mid-Quarter Monetary Policy Review of the Reserve Bank of September 16, 2010 , in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased  by 25 basis points from 5.75 per cent to 6.0 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 will be available at the revised repo rate, i.e., at 6.0 per cent with effect from September 16, 2010. Yours faithfully, (Janak Raj) Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/202 · issued 16 Sep 2010. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled banks (excluding RRBs), Primary dealers, Borrowers relying on export credit refinance), your first concrete step on “Repo Rate Hiked to 6%: Standing Liquidity Facilities Costlier” is: “Review your bank's funding costs and adjust lending rates accordingly to maintain margins.” (RBI issued this 16 Sep 2010).

  1. Circular: RBI/2010-11/202 -- Repo Rate Hiked to 6%: Standing Liquidity Facilities Costlier
  2. Issued: 16 Sep 2010
  3. Action required: Review your bank's funding costs and adjust lending rates accordingly to maintain margins.
  4. Action required: Reassess the demand for export credit refinance in light of the higher cost.
  5. Action required: Communicate the rate change to treasury and ALCO teams for liquidity planning.
  6. Action required: Monitor RBI's future policy actions for further rate adjustments.
  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.

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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=5994&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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