HomeCirculars › RBI/2011-2012/149

LAF Reverse Repo and MSF Timing Shift to Evening

Current · Source: Reserve Bank of India · RBI/2011-2012/149 · issued 09 Aug 2011 · ~1 min read
Quick answerFrom August 16, 2011, LAF Reverse Repo auctions and MSF operations move to 4:30-5:00 PM (Mumbai working days, excluding Saturdays). LAF Repo auctions remain at 9:30-10:30 AM. All other terms unchanged.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore, Priya, used to handle both borrowing and lending with RBI in the morning. Now, after August 16, 2011, she tells her team to submit bids for parking extra cash (Reverse Repo) or getting emergency funds (MSF) only between 4:30 and 5:00 PM, while morning is just for borrowing (Repo). This helps her plan end-of-day cash better.

What changed

Previously, LAF Reverse Repo auctions were held alongside Repo auctions from 9:30-10:30 AM, and MSF was available from 3:30-4:30 PM. The new schedule shifts Reverse Repo and MSF to a single evening window from 4:30-5:00 PM, effective August 16, 2011. LAF Repo auctions continue unchanged in the morning slot.

What it means for you

Banks now have a consolidated evening window for parking excess liquidity (Reverse Repo) and accessing emergency funds (MSF), which may improve end-of-day cash management. The separation of Repo and Reverse Repo timings could reduce intraday confusion and align liquidity operations with market close. No changes to other terms or conditions of LAF and MSF schemes.

What you must do

Who it affects

All Scheduled Commercial Banks (excluding RRBs), Primary Dealers, Treasury and liquidity management teams

❓ Common questions

Regulatory timeline

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

Why did RBI shift Reverse Repo and MSF to the evening?

The circular does not specify reasons, but the change likely aims to streamline end-of-day liquidity management and reduce overlap with morning Repo auctions.

Are there any changes to the terms of LAF or MSF schemes?

No. All other terms and conditions of the current LAF and MSF schemes remain unchanged as per the notification.

Does this affect Saturdays or non-Mumbai working days?

The new timing applies only on all working days in Mumbai, excluding Saturdays, consistent with the previous schedule.

📜 Read the original circular — full text as issued by RBI
RBI/2011-2012/149 FMD.MOAG. No.62/01.01.01/2011-12 August 9, 2011 All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers Dear Sir, Reverse Repo Window under Liquidity Adjustment Facility and Marginal Standing Facility – Change of Timing Presently, Repo and Reverse Repo auctions under Liquidity Adjustment Facility (LAF) are conducted between 9.30 am and 10.30 am and the Marginal Standing Facility (MSF) is available between 3.30 pm and 4.30 pm on all working days in Mumbai, except Saturdays. 2. It has been decided to conduct Reverse Repo auctions under LAF and MSF operations between 4.30 pm and 5.00 pm on all working days in Mumbai (excluding Saturdays) with effect from August 16, 2011. Repo auctions under LAF will continue to be conducted between 9.30 am and 10.30 am. 3. All other terms and conditions of the current LAF and MSF Schemes will remain unchanged. 4. Please acknowledge receipt. Yours sincerely (G Mahalingam) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-2012/149 · issued 09 Aug 2011. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Who does what — compliance checklist
⚙️ Operations
  • Communicate the new timing to dealing rooms and back-office teams handling liquidity operations.
💻 IT / Systems
  • Update internal treasury systems and cut-off times for LAF Reverse Repo and MSF bids to 4:30-5:00 PM from August 16, 2011.
📜 Compliance
  • Ensure morning LAF Repo auction processes remain unchanged at 9:30-10:30 AM.
  • Review end-of-day liquidity forecasting to leverage the consolidated evening window.
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 Commercial Banks (excluding RRBs), Primary Dealers, Treasury and liquidity management teams), your first concrete step on “LAF Reverse Repo and MSF Timing Shift to Evening” is: “Update internal treasury systems and cut-off times for LAF Reverse Repo and MSF bids to 4:30-5:00 PM from August 16, 2011.” (RBI issued this 09 Aug 2011).

  1. Circular: RBI/2011-2012/149 -- LAF Reverse Repo and MSF Timing Shift to Evening
  2. Issued: 09 Aug 2011
  3. Action required: Update internal treasury systems and cut-off times for LAF Reverse Repo and MSF bids to 4:30-5:00 PM from August 16, 2011.
  4. Action required: Communicate the new timing to dealing rooms and back-office teams handling liquidity operations.
  5. Action required: Ensure morning LAF Repo auction processes remain unchanged at 9:30-10:30 AM.
  6. Action required: Review end-of-day liquidity forecasting to leverage the consolidated evening window.
  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=6665&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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