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RBI Extends Second LAF Daily Till July 30, 2010

Current · Source: Reserve Bank of India · RBI/2010-2011/118 · issued 16 Jul 2010 · ~1 min read
Quick answerRBI has extended the Second Liquidity Adjustment Facility (SLAF) on a daily basis until July 30, 2010, to give banks and primary dealers more flexibility in managing liquidity. All other LAF terms remain unchanged.

What changed

The RBI decided to extend the Second Liquidity Adjustment Facility (SLAF) to operate daily instead of its previous schedule, effective from July 16, 2010, through July 30, 2010. This extension is based on an assessment of current overall liquidity conditions. All other terms and conditions of the LAF Scheme remain unchanged.

What it means for you

Banks and primary dealers get daily access to the SLAF window for the next two weeks, improving their ability to fine-tune liquidity positions. This signals RBI's proactive stance to ease short-term liquidity management amid prevailing conditions. No changes to LAF rates or other operational parameters.

What you must do

Who it affects

All Scheduled Commercial Banks (excluding RRBs), 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 Second Liquidity Adjustment Facility (SLAF)?

SLAF is an additional window under RBI's LAF scheme that allows banks and primary dealers to manage their daily liquidity needs. This circular extends its daily availability until July 30, 2010.

Does this change any LAF interest rates or margins?

No. The circular explicitly states that all other terms and conditions of the LAF Scheme remain unchanged. Only the frequency of SLAF operations is temporarily increased to daily.

Will this extension continue beyond July 30, 2010?

The circular only covers the period up to July 30, 2010. RBI will reassess liquidity conditions and may issue further guidance. Banks should stay alert for updates.

📜 Read the original circular — full text as issued by RBI
RBI/2010-2011/118 FMD.MOAG. No. 46 /01.01.01/2010-11 July 16, 2010 All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers Dear Sir, Second Liquidity Adjustment Facility On an assessment of current overall liquidity conditions and with a view to providing flexibility to scheduled commercial banks and primary dealers in their liquidity management, it has been decided to extend the second liquidity adjustment facility (SLAF) on a daily basis till July 30, 2010. 2. All other terms and conditions of the LAF Scheme will remain unchanged. 3. Please acknowledge receipt. Yours sincerely (P. Krishnamurthy) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-2011/118 · issued 16 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Update your treasury operations to account for daily SLAF availability through July 30, 2010.
📜 Compliance
  • Review liquidity forecasts to leverage the extended daily window for better cash management.
  • Ensure acknowledgment of this circular as required by RBI.
  • Monitor RBI communications for any further extensions or changes after July 30.
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), your first concrete step on “RBI Extends Second LAF Daily Till July 30, 2010” is: “Update your treasury operations to account for daily SLAF availability through July 30, 2010.” (RBI issued this 16 Jul 2010).

  1. Circular: RBI/2010-2011/118 -- RBI Extends Second LAF Daily Till July 30, 2010
  2. Issued: 16 Jul 2010
  3. Action required: Update your treasury operations to account for daily SLAF availability through July 30, 2010.
  4. Action required: Review liquidity forecasts to leverage the extended daily window for better cash management.
  5. Action required: Ensure acknowledgment of this circular as required by RBI.
  6. Action required: Monitor RBI communications for any further extensions or changes after July 30.
  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=5879&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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