What changed
RBI introduced a special second LAF (SLAF) at 2:30 p.m. on October 29, 2010, and at 4:15 p.m. on November 1, 2010. Additionally, a special 2-day repo auction under LAF was scheduled at 10:30 a.m. on Saturday, October 30, 2010. All other LAF scheme terms remained unchanged.
What it means for you
These temporary measures were aimed at providing liquidity comfort as the LAF window had been in injection mode. Banks and primary dealers got extra windows to access short-term funds, helping ease any liquidity tightness. The special Saturday auction allowed participants to manage weekend funding needs.
What you must do
- Participate in the SLAF auctions on Oct 29 and Nov 1, 2010, at the specified times.
- Submit bids for the special 2-day repo auction on Oct 30, 2010, by 10:30 a.m.
- Ensure your treasury teams are aware of the additional auction timings and adjust liquidity management accordingly.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Primary Dealers
What is the purpose of these special LAF auctions?
RBI introduced these temporary measures to provide liquidity comfort, as the LAF window had been in injection mode recently.
Are there any changes to the existing LAF scheme terms?
No, all other terms and conditions of the current LAF Scheme remain unchanged.
Who is eligible to participate in these special auctions?
All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers are eligible.