What changed
The Reverse Repo window under the Liquidity Adjustment Facility (LAF) has been rescheduled. The new timing is 7:00 PM to 7:30 PM, replacing the earlier slot of 4:45 PM to 5:15 PM. This revision takes effect from January 20, 2014.
What it means for you
Banks and primary dealers now have a later window to park surplus funds with RBI, which could help manage end-of-day liquidity more flexibly. The shift may reduce pressure on the earlier afternoon slot and align with market operations that extend into the evening. No other terms of the Reverse Repo scheme have been altered.
What you must do
- Update internal treasury systems and cut-off times to reflect the new 7:00 PM to 7:30 PM Reverse Repo window.
- Inform trading desks and back-office teams about the timing change effective January 20, 2014.
- Review liquidity management strategies to take advantage of the later window for parking funds.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Standalone Primary Dealers, Treasury and liquidity management teams
Why did RBI change the Reverse Repo window timing?
The change was based on feedback from market participants to better suit their operational needs. The new timing allows for later participation in the LAF Reverse Repo.
Are there any other changes to the Reverse Repo scheme?
No, all other terms and conditions of the Reverse Repo scheme under LAF remain unchanged. Only the timing has been revised.
When does the new timing take effect?
The revised timing is effective from Monday, January 20, 2014.