Quick answerRBI increases term repo under liquidity adjustment facility to 0.50% of NDTL with immediate effect.
What changed
The RBI has increased the quantum of liquidity to be provided through term repos of 7-day and 14-day tenor from 0.25% to 0.50% of net demand and time liabilities (NDTL) of the banking system.
What it means for you
This increase in liquidity will help banks meet their short-term funding needs and maintain liquidity in the system.
What you must do
Review and adjust your liquidity management strategies
Increase your term repo borrowing as needed
Monitor your NDTL and adjust your liquidity accordingly
Who it affects
Scheduled Commercial Banks (excluding RRBs)
What is the new quantum of liquidity under term repo?
0.50% of net demand and time liabilities (NDTL) of the banking system
When does the new quantum of liquidity come into effect?
With immediate effect
What are the other terms and conditions of the Term Repo under Liquidity Adjustment Facility?
Remain unchanged as stipulated in our circular FMD.MOAG.No.89/01.01.009/2013-14 dated October 8, 2013
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/341
FMD.MOAG. No. 92 /01.01.009/2013-14
October 29, 2013
All Scheduled Commercial Banks (excluding RRBs)
Madam / Sir,
Term Repo under Liquidity Adjustment Facility
As announced today in the Second Quarter Review of Monetary Policy 2013-14 , it has been decided to increase the quantum of liquidity to be provided through term repos of 7-day and 14-day tenor from the existing 0.25 per cent to 0.50 per cent of net demand and time liabilities (NDTL) of the banking system with immediate effect.
2. All other terms and conditions of the Term Repo under Liquidity Adjustment Facility as stipulated in our circular FMD.MOAG.No.89/01.01.009/2013-14 dated October 8, 2013 remain unchanged.
Yours sincerely
(G. Mahalingam)
Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/341 · issued 29 Oct 2013. The plain-English explanation above is BankPulse’s own independent summary.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI increases term repo under liquidity adjustment facility to 0.50% of NDTL with immediate effect.
Q2. Who does this circular apply to?
Scheduled Commercial Banks (excluding RRBs)
Q3. What is the first thing you should do about it?
Review and adjust your liquidity management strategies
Review and adjust your liquidity management strategies
Increase your term repo borrowing as needed
Monitor your NDTL and adjust your liquidity accordingly
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 (Scheduled Commercial Banks (excluding RRBs)), your first concrete step on “Term Repo under Liquidity Adjustment Facility Increased” is: “Review and adjust your liquidity management strategies” (RBI issued this 29 Oct 2013).
Circular: RBI/2013-14/341 -- Term Repo under Liquidity Adjustment Facility Increased
Issued: 29 Oct 2013
Action required: Review and adjust your liquidity management strategies
Action required: Increase your term repo borrowing as needed
Action required: Monitor your NDTL and adjust your liquidity accordingly
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.
AI-drafted · AI fact-check pending · under the editorial review of our expert review panel · decoded & published by BankPulse · 06 Jul 2026, 13:18 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8535&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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