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Repo Rate Hike to 7.50%: Standing Liquidity Facilities Impact

Current · Source: Reserve Bank of India · RBI/2013-14/276 · issued FY 2013-14 · ~2 min read
Quick answerRBI raised the repo rate by 25 bps to 7.50% effective September 20, 2013. Standing liquidity facilities for banks (Export Credit Refinance) and Primary Dealers will now be priced at this higher rate, increasing their cost of funds from RBI.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore, Priya, checks her bank's Export Credit Refinance borrowing. She calculates that the 0.25% rate hike means an extra ₹2,500 in interest cost for every ₹10 lakh borrowed. She tells her treasury team to raise the interest rate on new export loans to cover this cost.

What changed

The repo rate under the Liquidity Adjustment Facility (LAF) was increased by 25 basis points from 7.25% to 7.50%, effective immediately from September 20, 2013. Consequently, the standing liquidity facilities—Export Credit Refinance for banks and collateralised liquidity support for Primary Dealers—are now available at the revised repo rate of 7.50%.

What it means for you

Banks accessing Export Credit Refinance will face higher interest costs, potentially squeezing margins on export lending. Primary Dealers will also see increased funding costs for their liquidity support. This aligns with RBI's tightening stance to manage inflation, and banks may need to reassess their liquidity management and lending rates.

What you must do

Who it affects

All Scheduled Banks (excluding RRBs) availing Export Credit Refinance, Primary Dealers using collateralised liquidity support from RBI, Treasury and ALM desks of banks, Export credit lending departments

❓ 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 new repo rate effective from September 20, 2013?

The repo rate was increased by 25 basis points from 7.25% to 7.50%, effective immediately from September 20, 2013.

Which standing liquidity facilities are affected by this change?

The Export Credit Refinance (ECR) facility for banks and the collateralised liquidity support for Primary Dealers are now priced at the revised repo rate of 7.50%.

Are Regional Rural Banks (RRBs) impacted by this notification?

No, the notification explicitly excludes Regional Rural Banks (RRBs) from its scope.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/276 MPD No.BC.368/07.01.279/2013-14 Bhadra 29, 1935 (Sake) September 20, 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 dated September 20, 2013 , in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points from 7.25 per cent to 7.50 per cent with immediate effect. 2. Accordingly, the Standing Liquidity Facilities provided to banks under Export Credit Refinance (ECR) and to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate, i.e., at 7.50 per cent with effect from September 20, 2013. Yours faithfully, (Michael Debabrata Patra) Principal Adviser
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/276 · issued FY 2013-14. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Monitor LAF operations and adjust liquidity buffers to minimize reliance on standing facilities at higher rates.
💻 IT / Systems
  • Communicate the revised funding cost to treasury and credit teams to adjust pricing on export loans.
📜 Compliance
  • Review your bank's exposure to Export Credit Refinance and calculate the incremental cost impact of the 25 bps hike.
  • Assess the impact on net interest margins and consider passing on costs to borrowers where feasible.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Banks (excluding RRBs) availing Export Credit Refinance, Primary Dealers using collateralised liquidity support from RBI, Treasury and ALM desks of banks, Export credit lending departments), your first concrete step on “Repo Rate Hike to 7.50%: Standing Liquidity Facilities Impact” is: “Review your bank's exposure to Export Credit Refinance and calculate the incremental cost impact of the 25 bps hike.” (RBI issued this FY 2013-14).

  1. Circular: RBI/2013-14/276 -- Repo Rate Hike to 7.50%: Standing Liquidity Facilities Impact
  2. Issued: FY 2013-14
  3. Action required: Review your bank's exposure to Export Credit Refinance and calculate the incremental cost impact of the 25 bps hike.
  4. Action required: Communicate the revised funding cost to treasury and credit teams to adjust pricing on export loans.
  5. Action required: Monitor LAF operations and adjust liquidity buffers to minimize reliance on standing facilities at higher rates.
  6. Action required: Assess the impact on net interest margins and consider passing on costs to borrowers where feasible.
  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=8442&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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