What changed
The auction timing for Term Repo under the Liquidity Adjustment Facility has been revised from 2:30-3:00 PM to 11:00-11:30 AM. No other terms or conditions of the Term Repo facility have been altered.
What it means for you
Banks now need to adjust their liquidity management schedules to participate in Term Repo auctions earlier in the day. This change may improve coordination with other morning market operations and reduce end-of-day liquidity pressures.
What you must do
- Update internal treasury and ALM systems to reflect the new 11:00-11:30 AM auction window.
- Brief dealing room and liquidity management teams on the revised timing.
- Review cash flow forecasts to ensure readiness for morning auction participation.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Treasury and ALM desks, Liquidity management teams
Why did RBI change the Term Repo auction timings?
The revision was made in response to requests from market participants, aiming to better suit operational needs and improve liquidity management efficiency.
Are any other terms of the Term Repo facility changing?
No. All other terms and conditions remain unchanged as per the earlier circular dated October 8, 2013.