Repo Rate Hiked to 8%: Standing Liquidity Facilities Cost More
Current · Source: Reserve Bank of India · RBI/2013-14/464 · issued FY 2013-14 · ~1 min read
Quick answerRBI raised the repo rate by 25 bps to 8.00% effective January 28, 2014. Consequently, standing liquidity facilities under Export Credit Refinance for banks and collateralised liquidity support for Primary Dealers will now be priced at the new repo rate.
The rule, in the simplest words
RBI raised the repo rate (the interest rate banks pay to borrow from RBI) from 7.75% to 8.00% on January 28, 2014.
Banks and Primary Dealers (special companies that buy and sell government bonds) now pay 8.00% for special loans called Standing Liquidity Facilities (like Export Credit Refinance for banks).
This makes borrowing from RBI more expensive for banks and Primary Dealers who use these special loan windows.
How it plays out — a real example
A forex & trade-finance officer in Indore checks the new repo rate hike and sees that her bank's Export Credit Refinance cost just went up by 0.25%. She updates her loan pricing spreadsheet to add this extra cost, so the next gold loan she approves will have a slightly higher interest rate to cover the bank's higher borrowing expense.
What changed
The repo rate under the Liquidity Adjustment Facility was increased by 25 basis points from 7.75% to 8.00% with immediate effect. Standing liquidity facilities for banks (Export Credit Refinance) and Primary Dealers (collateralised liquidity support) are now available at the revised repo rate of 8.0%.
What it means for you
Banks and Primary Dealers will face higher costs for accessing these specific liquidity windows from RBI. This aligns with the monetary tightening stance and will likely increase short-term borrowing costs for lenders relying on these facilities.
What you must do
Review your bank's reliance on Export Credit Refinance and assess the impact of the 25 bps hike on funding costs.
Update internal pricing models for loans and advances to reflect the higher cost of liquidity.
Communicate the rate change to treasury and ALCO teams for immediate adjustment in liquidity planning.
Evaluate alternative funding sources to minimise dependence on standing facilities at the higher rate.
Who it affects
All scheduled banks (excluding RRBs) that use Export Credit Refinance, Primary Dealers availing collateralised liquidity support, Treasury and asset-liability management teams
❓ Common questions
Regulatory timeline
Stated effective dateeffective January 28, 2014
Decoded by BankPulse2026-06-18 10:59 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 January 28, 2014?
The repo rate was increased by 25 basis points to 8.00% per annum.
Which liquidity facilities are impacted by this change?
The standing liquidity facilities under Export Credit Refinance for banks and collateralised liquidity support for Primary Dealers are now priced at the revised repo rate.
Does this circular apply to Regional Rural Banks?
No, the circular explicitly excludes Regional Rural Banks (RRBs) from its scope.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/464
REF.No.MPD.BC. 371/07.01.279/2013-14
Magha 8,1935 (Sake)
January 28, 2014
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 Third Quarter Review of Monetary Policy 2013-14 dated January 28, 2014 , in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points from 7.75 per cent to 8.00 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 8.0 per cent with effect from January 28, 2014.
Yours faithfully,
(Michael Debabrata Patra)
Principal Adviser
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/464 · issued FY 2013-14. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All scheduled banks (excluding RRBs) that use Export Credit Refinance, Primary Dealers availing collateralised liquidity support, Treasury and asset-liability management teams), your first concrete step on “Repo Rate Hiked to 8%: Standing Liquidity Facilities Cost More” is: “Review your bank's reliance on Export Credit Refinance and assess the impact of the 25 bps hike on funding costs.” (RBI issued this FY 2013-14).
Circular: RBI/2013-14/464 -- Repo Rate Hiked to 8%: Standing Liquidity Facilities Cost More
Issued: FY 2013-14
Action required: Review your bank's reliance on Export Credit Refinance and assess the impact of the 25 bps hike on funding costs.
Action required: Update internal pricing models for loans and advances to reflect the higher cost of liquidity.
Action required: Communicate the rate change to treasury and ALCO teams for immediate adjustment in liquidity planning.
Action required: Evaluate alternative funding sources to minimise dependence on standing facilities at the higher rate.
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.
💬 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=8712&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.