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RBI Introduces Daily Special LAF to Ease Liquidity Pressure

Current · Source: Reserve Bank of India · RBI/2010-2011/266 · issued 09 Nov 2010 · ~1 min read
Quick answerRBI launched a daily Special LAF (SLAF) at 4:15 PM from Nov 9 to Dec 16, 2010, to ease frictional liquidity pressure. All other LAF terms remain unchanged. Banks and primary dealers can access this extra window for daily liquidity comfort.

What changed

RBI decided to conduct a special second LAF (SLAF) on a daily basis at 4:15 PM, effective November 9, 2010, until December 16, 2010. This is an additional liquidity easing measure beyond the regular LAF. All other terms and conditions of the existing LAF scheme remain unchanged.

What it means for you

This provides banks and primary dealers an extra daily window to manage short-term liquidity mismatches, reducing frictional pressure in the system. It signals RBI's proactive stance to ensure adequate liquidity during this period, which can help stabilize short-term rates and ease funding stress for lenders.

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 timing of this special LAF?

The SLAF will be conducted daily at 4:15 PM, starting November 9, 2010, until December 16, 2010.

Does this change any other LAF terms?

No, all other terms and conditions of the current LAF scheme remain unchanged.

📜 Read the original circular — full text as issued by RBI
RBI/2010-2011/266 FMD.MOAG. No.54/01.01.01/2010-11 November 9, 2010 All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers Dear Sir, Liquidity Adjustment Facility – Liquidity Easing Measure In order to provide liquidity comfort and to ease the frictional liquidity pressure, it has been decided to conduct a special second LAF (SLAF) on a daily basis at 4.15 pm up to December 16, 2010 with effect from November 9, 2010. 2. All other terms and conditions of the current LAF Scheme will remain unchanged. 3. Please acknowledge receipt. Yours sincerely (Nishita Raje) Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-2011/266 · issued 09 Nov 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 participate in the daily SLAF at 4:15 PM from November 9 to December 16, 2010.
💻 IT / Systems
  • Ensure your LAF bidding systems and cut-off times are adjusted to accommodate this additional window.
📜 Compliance
  • Monitor liquidity positions closely to leverage this facility for easing frictional pressure.
  • Acknowledge receipt of this circular as instructed.
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 Introduces Daily Special LAF to Ease Liquidity Pressure” is: “Update your treasury operations to participate in the daily SLAF at 4:15 PM from November 9 to December 16, 2010.” (RBI issued this 09 Nov 2010).

  1. Circular: RBI/2010-2011/266 -- RBI Introduces Daily Special LAF to Ease Liquidity Pressure
  2. Issued: 09 Nov 2010
  3. Action required: Update your treasury operations to participate in the daily SLAF at 4:15 PM from November 9 to December 16, 2010.
  4. Action required: Ensure your LAF bidding systems and cut-off times are adjusted to accommodate this additional window.
  5. Action required: Monitor liquidity positions closely to leverage this facility for easing frictional pressure.
  6. Action required: Acknowledge receipt of this circular as instructed.
  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=6087&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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