RBI raises liquidity limit for standalone primary dealers to Rs 15,000 cr

Mumbai, Mar 28, 2025

The Reserve Bank of India on Friday raised the aggregate limit available to Standalone Primary Dealers (SPDs) under the Standing Liquidity Facility at the prevailing repo rate, from Rs 10,000 crore to Rs 15,000 crore, effective from April 2, 2025.

“Based on an assessment of the prevailing and evolving liquidity conditions, the Reserve Bank of India has decided to increase the aggregate limit made available to the Standalone Primary Dealers (SPDs) under the Standing Liquidity Facility at the prevailing repo rate, from Rs 10,000 crore to Rs 15,000 crore, starting from April 2, 2025. The limit for individual SPDs is being conveyed to them separately. All other terms and conditions of the facility shall remain unchanged,” the central bank said in a release.

“This means that Standalone PDs will have more sources to access funds, which will be good for PDs,” said a dealer at a primary dealership. “I don’t see much impact of this on the gilts market,” he added.

Earlier in the week, the central bank allowed SPDs to participate in all repo operations, irrespective of the tenor, conducted by the RBI.

Earlier, SPDs were permitted to participate in all overnight liquidity management operations, excluding the Marginal Standing Facility. Additionally, SPDs could participate in other operations, such as long-term Variable Rate Repo (VRR) operations and daily VRRs, on a case-by-case basis.

[The Business Standard]