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Repo Rate Cut to 7.50%: Standing Liquidity Facility Rates Revised

Current · Source: Reserve Bank of India · RBI/2012-13/446 · issued FY 2012-13 · ~2 min read

Quick answerRBI cut the repo rate by 25 bps to 7.50% effective March 19, 2013. Consequently, interest on standing liquidity facilities—Export Credit Refinance, Special Export Credit Refinance for banks, and collateralised liquidity support for Primary Dealers—is now charged at the new repo rate.

The rule, in the simplest words

On 19 March 2013 the RBI lowered the repo rate (the main interest rate the RBI charges banks) by 0.25 % to 7.50 %.
The interest that banks pay on Export Credit Refinance (ECR) and Special Export Credit Refinance (SECR) and that Primary Dealers pay on collateralised liquidity support is now the same 7.50 % rate.
Because the cost of borrowing from these facilities is lower, banks and Primary Dealers can get cheaper money for export‑related loans and other liquidity needs.

How it plays out — a real example

Rohit, an export‑credit officer at a scheduled bank in Mumbai, logs into the treasury system on 20 March, sees the repo rate has changed to 7.50 %, updates the pricing for the bank's Export Credit Refinance facility, and informs his team that they can now offer exporters a slightly cheaper loan, helping the bank attract more export business.

What changed

The repo rate under the Liquidity Adjustment Facility was reduced from 7.75% to 7.50%, a 25 basis point cut. This change immediately lowered the interest rate on standing liquidity facilities—Export Credit Refinance, Special Export Credit Refinance for scheduled banks (excluding RRBs), and collateralised liquidity support for Primary Dealers—to the revised repo rate.

What it means for you

Banks and Primary Dealers will now pay lower interest on these specific liquidity windows, reducing their cost of funds for export credit and general liquidity support. This aligns with the monetary policy easing stance and may encourage banks to utilise these facilities more actively, potentially improving credit flow to exporters.

What you must do

Update internal systems to reflect the new 7.50% rate on ECR, SECR, and PD liquidity facilities immediately.
Communicate the revised rate to treasury and credit teams handling export refinance and liquidity management.
Review your bank's utilisation of standing liquidity facilities to optimise borrowing costs under the new rate.
Monitor RBI's future policy announcements for further rate changes that may affect these facilities.

Who it affects

All Scheduled Banks (excluding Regional Rural Banks), Primary Dealers, Export credit departments of banks, Treasury desks managing liquidity

❓ Common questions

Regulatory timeline

Stated effective date effective March 19, 2013
Decoded by BankPulse 2026-06-18 16:02 IST

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

Which facilities are impacted by this repo rate cut?

The interest rates on Export Credit Refinance (ECR), Special Export Credit Refinance (SECR) for banks, and collateralised liquidity support for Primary Dealers are all reduced to the new repo rate of 7.50%.

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

No, the circular explicitly excludes Regional Rural Banks from its scope. Only scheduled banks (excluding RRBs) and Primary Dealers are affected.

When did this rate change take effect?

The revised rate became effective immediately from March 19, 2013, the date of the circular.

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

RBI/2012-13/446

 MPD.BC.362/07.01.279/2012-13

 Phalguna 28, 1934 (S)

 March 19, 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 Mid Quarter Monetary Policy Review: March 2013 dated March 19, 2013, in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 25 basis points from 7.75 per cent to 7.50 per cent with immediate effect.

 2. Accordingly, the interest rate charged on 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 is at the revised repo rate, i.e., at 7.50 per cent with immediate effect.

 Yours faithfully,

 (Michael Debabrata Patra) 

 Adviser-in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/446 · issued FY 2012-13. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Update internal systems to reflect the new 7.50% rate on ECR, SECR, and PD liquidity facilities immediately.
Communicate the revised rate to treasury and credit teams handling export refinance and liquidity management.

📜 Compliance

Review your bank's utilisation of standing liquidity facilities to optimise borrowing costs under the new rate.
Monitor RBI's future policy announcements for further rate changes that may affect these facilities.

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 Regional Rural Banks), Primary Dealers, Export credit departments of banks, Treasury desks managing liquidity), your first concrete step on “Repo Rate Cut to 7.50%: Standing Liquidity Facility Rates Revised” is: “Update internal systems to reflect the new 7.50% rate on ECR, SECR, and PD liquidity facilities immediately.” (RBI issued this FY 2012-13).

Circular: RBI/2012-13/446 -- Repo Rate Cut to 7.50%: Standing Liquidity Facility Rates Revised
Issued: FY 2012-13
Action required: Update internal systems to reflect the new 7.50% rate on ECR, SECR, and PD liquidity facilities immediately.
Action required: Communicate the revised rate to treasury and credit teams handling export refinance and liquidity management.
Action required: Review your bank's utilisation of standing liquidity facilities to optimise borrowing costs under the new rate.
Action required: Monitor RBI's future policy announcements for further rate changes that may affect these facilities.
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=7898&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.