What changed
RBI decided to conduct a special second LAF (SLAF) on a daily basis at 4:15 PM, effective November 9, 2010, until December 16, 2010. This is an additional liquidity easing measure beyond the regular LAF. All other terms and conditions of the existing LAF scheme remain unchanged.
What it means for you
This provides banks and primary dealers an extra daily window to manage short-term liquidity mismatches, reducing frictional pressure in the system. It signals RBI's proactive stance to ensure adequate liquidity during this period, which can help stabilize short-term rates and ease funding stress for lenders.
What you must do
- Update your treasury operations to participate in the daily SLAF at 4:15 PM from November 9 to December 16, 2010.
- Ensure your LAF bidding systems and cut-off times are adjusted to accommodate this additional window.
- Monitor liquidity positions closely to leverage this facility for easing frictional pressure.
- Acknowledge receipt of this circular as instructed.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Primary Dealers
What is the timing of this special LAF?
The SLAF will be conducted daily at 4:15 PM, starting November 9, 2010, until December 16, 2010.
Does this change any other LAF terms?
No, all other terms and conditions of the current LAF scheme remain unchanged.