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Repo Rate Cut to 7.75%: Standing Liquidity Facilities Repriced

Current · Source: Reserve Bank of India · RBI/2012-13/400 · issued FY 2012-13 · ~1 min read

Quick answerRBI cut the repo rate by 25 bps to 7.75% effective January 29, 2013. All standing liquidity facilities for banks (ECR, SECR) and Primary Dealers are now available at this lower rate, reducing borrowing costs for eligible institutions.

The rule, in the simplest words

RBI (India's central bank) cut the repo rate (the rate at which banks borrow from RBI) from 8.00% to 7.75% on January 29, 2013.
All standing liquidity facilities (special cheap loans for banks and Primary Dealers) now charge the new lower rate of 7.75%.
Export Credit Refinance (ECR) and Special Export Credit Refinance (SECR) for banks are now at 7.75%, so banks pay less to fund export loans.
Primary Dealers (companies that buy and sell government bonds) also get cheaper collateralised liquidity support at 7.75%.
This cut helps banks and dealers borrow more cheaply, which can lower costs for export businesses and boost the economy.

How it plays out — a real example

A forex & trade-finance officer in Indore checks the daily rates and sees the repo rate dropped to 7.75%. She updates her system so that the export credit refinance loans her bank offers to local textile exporters now cost less to fund, allowing her to offer slightly lower interest rates to her export clients and ease their short-term cash flow.

What changed

The repo rate under the Liquidity Adjustment Facility (LAF) was reduced by 25 basis points from 8.00% to 7.75% with immediate effect. Consequently, the interest rate on standing liquidity facilities—Export Credit Refinance (ECR), Special Export Credit Refinance (SECR) for banks, and collateralised liquidity support for Primary Dealers—was aligned to the new repo rate of 7.75%.

What it means for you

Banks and Primary Dealers will now pay lower interest on funds accessed through these standing facilities, directly reducing their cost of liquidity. This should ease short-term funding pressures and support credit flow, especially for export-oriented sectors. The cut signals RBI's accommodative stance to stimulate economic activity.

What you must do

Update internal systems to reflect the new 7.75% rate for ECR, SECR, and PD liquidity support.
Reassess liquidity management strategies to take advantage of cheaper standing facility borrowings.
Communicate the rate change to treasury and credit teams for accurate pricing of export credit products.
Monitor LAF operations to optimize usage of the revised facility rates.

Who it affects

All scheduled banks (excluding RRBs), Primary Dealers, Export credit borrowers (indirectly through lower ECR/SECR costs)

❓ Common questions

Regulatory timeline

Stated effective date effective January 29, 2013
Decoded by BankPulse 2026-06-18 16:26 IST

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

Which standing facilities are impacted by this repo rate cut?

The Export Credit Refinance (ECR), Special Export Credit Refinance (SECR) for banks, and collateralised liquidity support for Primary Dealers are all now available at the revised repo rate of 7.75%.

When does the new rate become effective?

The revised rate of 7.75% is effective from January 29, 2013, the date of the Third Quarter Review of Monetary Policy 2012-13.

Are Regional Rural Banks (RRBs) covered by this change?

No, the circular explicitly excludes Regional Rural Banks (RRBs) from the scope of this notification.

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

RBI/2012-13/400

 REF.No.MPD.BC.361 /07.01.279/2012-13

 Magha 9, 1934 (Saka)

 January 29, 2013

 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 Third Quarter Review of Monetary Policy 2012-13 dated January 29, 2013 , in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been decreased by 25 basis points from 8.00 per cent to 7.75 per cent with immediate effect.

 2. Accordingly, the Standing Liquidity Facilities provided to banks under Export Credit Refinance (ECR) and Special Export Credit Refinance (SECR) and to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate, i.e., at 7.75 per cent with effect from January 29, 2013.

 Yours faithfully,

 (Michael Debabrata Patra)

 Adviser-in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/400 · issued FY 2012-13. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

⚙️ Operations

Monitor LAF operations to optimize usage of the revised facility rates.

💻 IT / Systems

Update internal systems to reflect the new 7.75% rate for ECR, SECR, and PD liquidity support.
Communicate the rate change to treasury and credit teams for accurate pricing of export credit products.

📜 Compliance

Reassess liquidity management strategies to take advantage of cheaper standing facility borrowings.

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, Export credit borrowers (indirectly through lower ECR/SECR costs)), your first concrete step on “Repo Rate Cut to 7.75%: Standing Liquidity Facilities Repriced” is: “Update internal systems to reflect the new 7.75% rate for ECR, SECR, and PD liquidity support.” (RBI issued this FY 2012-13).

Circular: RBI/2012-13/400 -- Repo Rate Cut to 7.75%: Standing Liquidity Facilities Repriced
Issued: FY 2012-13
Action required: Update internal systems to reflect the new 7.75% rate for ECR, SECR, and PD liquidity support.
Action required: Reassess liquidity management strategies to take advantage of cheaper standing facility borrowings.
Action required: Communicate the rate change to treasury and credit teams for accurate pricing of export credit products.
Action required: Monitor LAF operations to optimize usage of the revised facility rates.
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=7836&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.