Repo Rate Hiked to 7.75%: Standing Liquidity Facilities Costlier
Current · Source: Reserve Bank of India · RBI/2013-14/343 · issued 29 Oct 2013 · ~2 min read
Quick answerRBI raised the repo rate by 25 bps to 7.75% effective October 29, 2013. Consequently, standing liquidity facilities for banks (Export Credit Refinance) and Primary Dealers will now be priced at the new repo rate, increasing borrowing costs.
The rule, in the simplest words
The RBI increased the repo rate by 25 basis points to 7.75%.
Banks and Primary Dealers will now pay 7.75% for standing liquidity facilities.
This rate hike aims to curb inflation and may impact loan demand.
How it plays out — a real example
A forex & trade-finance officer in Indore, Mr. Kumar, needs to review the interest rates for export credit products to reflect the higher refinance cost. Mr. Kumar, a forex & trade-finance officer in Indore, is concerned about the impact of the repo rate hike on his export credit products. He needs to review the interest rates and adjust the pricing to reflect the higher refinance cost. This will help him to maintain his margins on export lending and ensure that his bank remains competitive in the market.
What changed
The repo rate under the Liquidity Adjustment Facility (LAF) was increased by 25 basis points from 7.50% to 7.75%, effective immediately from October 29, 2013. As a result, 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 7.75%.
What it means for you
Banks accessing Export Credit Refinance will face higher interest costs, squeezing margins on export lending. Primary Dealers will also pay more for collateralised liquidity support, potentially tightening market liquidity. This rate hike signals RBI's intent to curb inflation, and banks may pass on the cost to borrowers, impacting loan demand.
What you must do
Review and adjust pricing on export credit products to reflect the higher refinance cost.
Reassess liquidity management strategies to minimise reliance on standing facilities.
Communicate the rate change to treasury and credit teams for updated cost calculations.
Monitor market liquidity conditions and adjust borrowing plans accordingly.
Who it affects
All scheduled banks (excluding RRBs) using Export Credit Refinance, Primary Dealers availing collateralised liquidity support, Treasury departments managing liquidity and funding costs
❓ Common questions
Regulatory timeline
Stated effective dateeffective October 29, 2013
Decoded by BankPulse2026-06-18 12:03 IST
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 October 29, 2013?
The repo rate was increased by 25 basis points to 7.75% per annum, as announced in the Second Quarter Review of Monetary Policy 2013-14.
Which standing liquidity facilities are affected by this change?
The Export Credit Refinance (ECR) for banks and the collateralised liquidity support for Primary Dealers are now priced at the revised repo rate of 7.75%.
Are Regional Rural Banks (RRBs) impacted by this circular?
No, the circular explicitly excludes RRBs from its scope. Only scheduled banks (excluding RRBs) and Primary Dealers are affected.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/343
MPD. No.BC. 370/07.01.279/2013-14
October 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 Second Quarter Review of Monetary Policy Statement 2013-14 dated October 29, 2013 , in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points from 7.50 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 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 October 29, 2013.
Yours faithfully,
(Michael Debabrata Patra)
Principal Adviser
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/343 · issued 29 Oct 2013. The plain-English explanation above is BankPulse’s own independent summary.
Communicate the rate change to treasury and credit teams for updated cost calculations.
📜 Compliance
Review and adjust pricing on export credit products to reflect the higher refinance cost.
Reassess liquidity management strategies to minimise reliance on standing facilities.
Monitor market liquidity conditions and adjust borrowing plans 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 (All scheduled banks (excluding RRBs) using Export Credit Refinance, Primary Dealers availing collateralised liquidity support, Treasury departments managing liquidity and funding costs), your first concrete step on “Repo Rate Hiked to 7.75%: Standing Liquidity Facilities Costlier” is: “Review and adjust pricing on export credit products to reflect the higher refinance cost.” (RBI issued this 29 Oct 2013).
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=8537&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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