Current · Source: Reserve Bank of India · RBI/2013-14/627 · issued 04 Jun 2014 · ~2 min read
Quick answerRBI has launched 28-day special term repo auctions for up to 0.25% of banking system NDTL, starting June 6, 2014, on non-reporting Fridays. This provides banks an additional liquidity management tool.
The rule, in the simplest words
RBI (the central bank of India) will hold special auctions where banks can borrow money for 28 days.
The total amount banks can borrow in these auctions is limited to 0.25% of the banking system's NDTL (total deposits and other liabilities).
These auctions will usually happen on Fridays that are not 'reporting Fridays' (Fridays when banks report their financial details to RBI).
The first auction is on June 6, 2014, and banks must follow the Term Repo (short-term borrowing) rules from February 13, 2014.
How it plays out — a real example
A branch operations officer in Indore, Priya, checks her bank's NDTL (total deposits) to see how much they can borrow in the new 28-day special term repo auction. She calculates that 0.25% of their NDTL is ₹5 crore, so she tells the treasury team to prepare to bid in the June 6, 2014 auction to cover a temporary cash shortfall from a big gold loan disbursement.
What changed
RBI announced a new 28-day special term repo auction facility, with a notified amount capped at 0.25% of the banking system's net demand and time liabilities (NDTL). These auctions will typically be held on non-reporting Fridays, with the first one scheduled for June 6, 2014. The auctions follow the revised Term Repo guidelines issued on February 13, 2014.
What it means for you
Banks gain a new avenue to access short-term liquidity from RBI for a 28-day period, which can help manage temporary fund mismatches more flexibly. The cap at 0.25% of NDTL ensures the facility is used for fine-tuning rather than large-scale borrowing. Scheduled commercial banks (excluding RRBs) should factor this into their liquidity planning and auction participation strategies.
What you must do
Review your bank's NDTL to estimate eligible borrowing under the 0.25% cap.
Prepare to participate in the first auction on June 6, 2014, and subsequent non-reporting Friday auctions.
Update internal liquidity management and treasury operations to incorporate this new 28-day repo window.
Ensure compliance with the revised Term Repo guidelines issued on February 13, 2014.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Bank treasury and liquidity management teams, RBI's monetary operations division
❓ Common questions
What is the maximum amount a bank can borrow in these special term repo auctions?
The total notified amount for each auction is up to 0.25% of the net demand and time liabilities (NDTL) of the entire banking system, not per bank. Individual bank participation will depend on the auction mechanism.
When will these auctions be conducted?
The auctions will usually be held on non-reporting Fridays. The first auction is scheduled for June 6, 2014.
Which banks are eligible to participate?
All Scheduled Commercial Banks are eligible, except Regional Rural Banks (RRBs).
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/627
FMD.MOAG. No. 103/01.01.009/2013-14
June 4, 2014
All Scheduled Commercial Banks (excluding RRBs)
Madam / Sir,
Special Term Repo Auction
As announced yesterday in the Second Bi-Monthly Monetary Policy Statement for 2014-15 , it has been decided to introduce special term repo auctions of 28-day tenor for a notified amount up to 0.25 per cent of net demand and time liabilities (NDTL) of the banking system. The 28-day special term repo auction will usually be conducted on non-reporting Fridays. The first such special term repo auction will be conducted on June 6, 2014 (Friday).
2. The special term repo auctions will be conducted as per the revised guidelines on Term Repo issued on February 13, 2014 .
3. Please acknowledge receipt.
Yours sincerely
(G. Mahalingam)
Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/627 · issued 04 Jun 2014. The plain-English explanation above is BankPulse’s own independent summary.
Update internal liquidity management and treasury operations to incorporate this new 28-day repo window.
📜 Compliance
Review your bank's NDTL to estimate eligible borrowing under the 0.25% cap.
Prepare to participate in the first auction on June 6, 2014, and subsequent non-reporting Friday auctions.
Ensure compliance with the revised Term Repo guidelines issued on February 13, 2014.
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 Commercial Banks (excluding RRBs), Bank treasury and liquidity management teams, RBI's monetary operations division), your first concrete step on “RBI Introduces 28-Day Special Term Repo Auctions” is: “Review your bank's NDTL to estimate eligible borrowing under the 0.25% cap.” (RBI issued this 04 Jun 2014).
Circular: RBI/2013-14/627 -- RBI Introduces 28-Day Special Term Repo Auctions
Issued: 04 Jun 2014
Action required: Review your bank's NDTL to estimate eligible borrowing under the 0.25% cap.
Action required: Prepare to participate in the first auction on June 6, 2014, and subsequent non-reporting Friday auctions.
Action required: Update internal liquidity management and treasury operations to incorporate this new 28-day repo window.
Action required: Ensure compliance with the revised Term Repo guidelines issued on February 13, 2014.
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=8921&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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