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RBI hikes term repo liquidity to 0.75% of NDTL

Current · Source: Reserve Bank of India · RBI/2013-2014/550 · issued 01 Apr 2014 · ~1 min read
Quick answerRBI increased the liquidity available under 7-day and 14-day term repos from 0.5% to 0.75% of banking system NDTL, effective immediately, as part of the April 2014 monetary policy.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore, Mr. Kumar, is happy to know that his bank now has access to more liquidity via term repos. This means they can manage short-term funding gaps more comfortably, allowing them to provide more loans to customers. Mr. Kumar will review his bank's liquidity management framework and bidding strategy for term repo auctions to optimize access to the increased liquidity.

What changed

The RBI raised the quantum of liquidity provided through 7-day and 14-day term repo auctions from 0.5% to 0.75% of the banking system's net demand and time liabilities (NDTL). This change took effect from April 1, 2014, following the announcement in the First Bi-monthly Monetary Policy Statement 2014-15. All other terms and conditions of the existing Term Repo scheme remain unchanged.

What it means for you

Banks now have access to more liquidity via term repos, which can help manage short-term funding gaps more comfortably. The increase signals the RBI's intent to ease liquidity conditions without altering the policy rate. Lenders should factor in the higher available quantum when planning their liquidity management and bidding in term repo auctions.

What you must do

Who it affects

All scheduled commercial banks (excluding RRBs), Treasury departments, Asset-liability management (ALM) teams

❓ Common questions

What is the effective date of this change?

The increase in term repo liquidity from 0.5% to 0.75% of NDTL is effective from April 1, 2014, with immediate effect.

Does this change affect any other terms of the Term Repo scheme?

No, all other terms and conditions of the current Term Repo scheme remain unchanged as per the circular.

Which banks are covered by this circular?

All scheduled commercial banks, excluding Regional Rural Banks (RRBs), are covered.

📜 Read the original circular — full text as issued by RBI
RBI/2013-2014/550 FMD.MOAG. No.101/01.01.009/2013-14 April 01, 2014 All Scheduled Commercial Banks (excluding RRBs) Madam / Sir, Term Repo under Liquidity Adjustment Facility As announced today in the First Bi-monthly Monetary Policy Statement 2014-15 , it has been decided to increase the quantum of liquidity provided under 7-day and 14-day term repos from 0.5 per cent of net demand and time liabilities (NDTL) of the banking system to 0.75 per cent with immediate effect . 2. All other terms and conditions of the current Term Repo scheme will remain unchanged. 3. Please acknowledge receipt. Yours sincerely (G. Mahalingam) Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-2014/550 · issued 01 Apr 2014. The plain-English explanation above is BankPulse’s own independent summary.
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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), Treasury departments, Asset-liability management (ALM) teams), your first concrete step on “RBI hikes term repo liquidity to 0.75% of NDTL” is: “Update your internal liquidity management framework to reflect the higher term repo limit of 0.75% of NDTL.” (RBI issued this 01 Apr 2014).

  1. Circular: RBI/2013-2014/550 -- RBI hikes term repo liquidity to 0.75% of NDTL
  2. Issued: 01 Apr 2014
  3. Action required: Update your internal liquidity management framework to reflect the higher term repo limit of 0.75% of NDTL.
  4. Action required: Review your bidding strategy for 7-day and 14-day term repo auctions to optimize access to the increased liquidity.
  5. Action required: Communicate the revised limit to your treasury and ALM teams for immediate operational alignment.
  6. Action required: Monitor RBI announcements for any further changes to the term repo scheme terms.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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.

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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=8821&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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