RBI/2004-05/251
IDMD.OMO No. 08 /03.75.00/2004-05
October 27, 2004
All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers
Dear Sirs,
Liquidity Adjustment Facility – Revised Scheme
Please refer to paragraphs 68, 69 and 70 of the Mid-Term
Review of the Annual Policy Statement for the year 2004-05 dated October
26, 2004 and our circular IDMD.OMO
No.7/03.75.00/2004-05 of the same date, announcing the following changes
in the Scheme of Liquidity Adjustment Facility (LAF):
- It has been decided, effective October 29, 2004 to switchover to the international
usage of the terms 'repo' and 'reverse repo'.
- With effect from November 1, 2004, the auctions of 7-day and 14-day repo
(reverse repo by international parlance) would stand discontinued. Therefore,
with effect from November 1, 2004, the LAF Scheme would be operated through
overnight fixed rate repo and reverse repo.
2. Accordingly, the nomenclature changes under LAF will be
as follows:
S No |
Prior to October 29,2004 |
With effect from October 29, 2004 |
1 |
1-day Repo |
1-day Reverse Repo |
2 |
1-day Reverse Repo |
1-day Repo |
3 |
Repo Rate |
Reverse Repo Rate |
4 |
Reverse Repo Rate |
Repo Rate |
Note: The 7-day repo to be conducted on October 29, 2004
will be termed 7-day reverse repo.
3. With a view to making the LAF sub-module in PDO-NDS user-friendlier,
the following modifications have also been carried out, to come into effect
on October 29, 2004.
4. The Repo Constituent (RC) SGL Account and the Reverse Repo
Constituent (RRC) SGL Account have been integrated into the PDO-NDS system.
Therefore, transfer of securities from the SGL Account to the RC SGL account
can now be made by the member (by Transfer Order Booking by means of RC Transfer
functionality in the LAF module). Transfer would require the approval of PAD,
Securities Section, RBI. To facilitate approval at PAD, members will be required
to tender physical SGL Form duly completed. Therefore while the members requiring
to replenish their RC SGL account may fax the physical SGL Form to PAD, Securities
Section to avoid any loss of time, they must deliver physical SGL Form by 2.30
p.m. positively. Similarly the movement of securities from RC SGL to SGL Account
has to be initiated (by RC Withdrawal functionality in the LAF module) by the
member, followed by SGL Form submission and confirmation by PAD, Securities
Section. Balance available in the RC SGL Account cannot be utilized for any
transaction other than LAF, as hitherto.
5. Since the RC/RRC SGL Accounts are available on-line, PAD,
Securities Section will discontinue the practice of furnishing Daily Balance
Certificate to members, except for exceptional reasons e.g. when required by
statutory auditors.
6. Consequent to the change in nomenclature, the rate at which
Standing Liquidity Facilities would henceforth be made available would be known
as the Repo Rate.
7. The LAF scheme notified on March 25, 2004, as adjusted for
the above changes, is given in Annex A.
Yours faithfully,
(Jasbir Singh)
Chief General Manager
Annex –A
Scheme of Liquidity Adjustment
Facility – Modified as on October 29, 2004
The revised Liquidity Adjustment Facility (LAF) Scheme (as
given in RBI Circular RBI –115/2004 dated March 25, 2004) stands modified in
line with the recent changes as under:
I. The Scheme of Liquidity Adjustment Facility
1. Effective Date
The change in nomenclature of operations and rates under the
LAF Scheme will be made effective from October 29, 2004 while the 7-day and
14-day repo operations will be discontinued with effect from November 1, 2004.
2. Tenor
Under the scheme, (i) Overnight Reverse Repo auctions (for
absorption of liquidity) and (ii) Overnight Repo auctions (for injection of
liquidity) will be conducted on a daily basis (Monday to Friday, excepting holidays).
3. Rate of Interest
Both the reverse repo and repo operations will be conducted
at a fixed rate. The reverse repo rate will be fixed by the Reserve Bank from
time to time. The repo rate will continue to be linked to the reverse repo rate
through a spread as mark up over the reverse repo rate. The spread will be determined
based on market conditions and other relevant factors and changes therein as
when effected will be announced by Reserve Bank.
4. Discretion to Reserve Bank
Under the revised Scheme, Reserve Bank will continue to have
the discretion to conduct overnight/ longer term reverse repo/ repo auctions
at fixed rate or at variable rates depending on market conditions and other
relevant factors.
5. Mechanics of operations
i) The time limit for submission of bids under LAF will
continue to be 10.30 a.m. as now. The auction results will be announced
by 12.00 noon as at present. After the full-fledged operationalisation
of the Real Time Gross Settlement (RTGS) system, these timings will be reviewed.
ii) The bids will be submitted electronically in the Negotiated
Dealing System (NDS). Members of NDS facing genuine systems problem on any
specific day may submit physical bids in sealed cover in the box provided
in Mumbai Office, Reserve Bank of India, by 10.30 A.M. In case of inability
to submit physical bid by 10.30 A.M. in the bid box, intention to submit
physical bid indicating the bid amount must be communicated to the Manager,
Securities Section, Public Accounts Department (PAD), Mumbai Office
by fax (fax No. 022-22620802) before 10.30 A.M. and the bid in a sealed
cover delivered to the Securities Section, PAD by 11.00 A.M. If such physical
bids are not received by 11.00 A.M. the Fax request received intimating
repo amount will be ignored. It may be noted that the facility of fax communication
on intention to submit the physical bid should not be used to circumvent
the time discipline.
iii) The NDS provides for submission of single or multiple
bids by the member. However, as far as possible only one bid should be submitted
by a member.
iv) The Reverse Repo/Repo will be conducted as "Hold-
in- Custody" type, wherein the Reserve Bank will act as a custodian
for the participants and hold the securities on their behalf in the Reverse
Repo/ Repo Constituents SGL Accounts. Pursuant to this, the participants
will have to give an undertaking as given in the respective tender forms
authorising Reserve Bank to act on their behalf. Reserve Bank shall not,
however be responsible for any loss, damage or liability on account of acting
as the Custodian on behalf of the participants. A Reverse Repo Constituents’
SGL Account (RRC SGL Account) and Repo Constituents’ SGL Account (RC SGL
Account) will be opened and held in the Public Accounts Department in Mumbai
Office of the Reserve Bank of India for this purpose. These accounts will
have institution-wise subsidiary records of the securities delivered by
the Reserve Bank under Reverse Repo and securities held for delivery to
the Reserve Bank under Repo. Reserve Bank will also have its own subsidiary
accounts in the case of both of these accounts.
v) On acceptance of bid in respect of Reverse Repos, the tenderer’s RRC
SGL Account will be credited with the required quantum of securities and
Current Account will be debited for the reverse repo amount. The transaction
will be reversed in the second leg.
vi) In the case of Repos, on acceptance of bid, the tenderer’s RC SGL Account
will be debited with the required quantum of securities and Current Account
will be credited with the Repo amount. The transactions will be reversed
in the second leg.
vii) The LAF transactions between Reserve Bank and counter
parties which would involve operation of the RRC SGL Account and RC SGL
Account would not require separate SGL forms as provision for the purpose
has been made in the bid application. However, transfer from tenderer’s
SGL Account to the RC SGL Account (RC Transfer), or vice versa (RC Withdrawal),
will require completion of SGL Form.
viii) Pricing of all securities including Treasury Bills
will be at face value for Reverse Repo/ Repo operations by Reserve Bank.
Accrued interest as on the date of transaction will be ignored for the purpose
of pricing of securities. Coupon, if any, will be transferred to RBI in
the case of Reverse Repos, and Reserve Bank will collect the coupon, if
any, on the due date and credit the same to the party’s Current Account
in the case of Repos.
ix) Since the securities available in RC SGL Account are
meant only for availing liquidity from Reserve Bank, the system will automatically
transfer the securities once the allotment is complete. Securities falling
under shut period either on the date of transaction or on the date of reversal
will not be eligible for collateral.
6. Eligibility
All Scheduled Commercial Banks (excluding Regional Rural Banks)
and Primary Dealers (PDs) having Current Account and SGL Account with Reserve
Bank, Mumbai will be eligible to participate in the Reverse Repo and Repo auctions.
7. Minimum bid size
Bids will be received for a minimum amount of Rs.5 crore
and in multiples of Rs. 5 crore thereafter.
8. Eligible Securities
Reverse Repos and Repos will be undertaken in all SLR-eligible
transferable Government of India dated Securities/Treasury Bills.
9. Margin Requirement
A margin will be uniformly applied in respect of the above
eligible securities. The amount of securities offered or tendered on acceptance
of a bid for Rs.100 will be Rs.105 in terms of face value.
10. Settlement of Transactions
The settlement of transactions in the auction will take place
on the same day. As the second leg of all LAF transactions are automatically
generated at the 'begin of day', participants must ensure sufficient balance
in their current account in case of reversal of Repo.
11. SLR and Securities held in Repo SGL Account
Securities held by the Reserve Bank on behalf of participants
in RRC SGL account and credit balance in the RC SGL Account will be counted
for SLR purpose, participants can take the balance printout of their accounts
at their end from the system. Securities Section, PAD will not provide daily
certificate for LAF settlement in the new system. It may be noted that the unused
balance available in RC Account cannot be used in other transactions unless
transferred to SGL account by RC Withdrawal. As far as valuation, etc. for SLR
purpose is concerned, the extant instructions issued by the Department of Banking
Operations and Development (DBOD) of the Reserve Bank will apply.
12. Terms and Conditions
Tender forms for bid submission for "Reverse Repo Auction"
and "Repo Auction" along with terms and conditions are enclosed at
Annexes I and Annexure II respectively.
Encl: as above
ANNEX I
TENDER FORM FOR FIXED-RATE OVERNIGHT REVERSE REPO AUCTION
The Regional Director
Public Accounts Department
Reserve Bank of India
Mumbai Office
Mumbai
Tenderer’s RRC S.G.L. A/c.
No. with Securities. SG14_ _ _ _
Section, PAD
Tenderer’s Current
A/c. No. with D.A.D. ______________
Dear Sir,
Tender for Fixed-Rate Overnight Reverse Repurchase Agreements
(Reverse Repos) Auction to be held on ___________ by Reserve Bank of India
I/We* the undersigned hereby submit tender as set out below
for the purchase of Government of India dated securities/eligible Treasury
Bills from you on ___________________ with the undertaking that the same securities
will be sold back to you on __________________________.
Name of the tenderer &
Address
|
|
Amount bid @ (in figures)
(in words)
|
Rs. __________________ crore
Rupees _________________ crore
|
Reverse Repo Rate (per cent per annum) fixed by RBI
|
|
Telephone No.
|
|
Fax No.
|
|
@Indicates the nominal amount offered in Repo against
securities.
Undertakings
On your acceptance of my/our* tender,
- I/We* agree and undertake to immediately accept the electronic confirmation
advice from your office and to deposit the requisite amount at Reserve Bank
of India, Mumbai in the manner and on the day/time indicated therein.
- I/We* also authorise the Reserve Bank of India to be our custodian, to hold
the securities purchased by us from Reserve Bank of India under the Reverse
Repos, and to transfer them by debiting/crediting my/our Current Account and
Reverse Repo Constituents’ Accounts based on our application/bid form.
- I/We* agree the beneficial interest, viz., Coupon, if any, in respect of
securities transferred by Reserve Bank of India to us and held in the Reverse
Repo Constituents’ SGL Account will rest with Reserve Bank of India.
- I/We* agree that the Reserve Bank of India shall not be held responsible
for any loss, damage or liability on account of acting as the Custodian of
our securities. I/We* also agree that I/We* shall indemnify and keep indemnified
the Reserve Bank of India at all times against any loss, damage or liability
whatsoever arising out of acting as Custodian of our securities as above.
- I/We* have also submitted another bid(s)/not submitted any other bids* for
the auction.
Terms and conditions
I/We* have read the terms and conditions for the auction and
undertake to abide by them.
Yours faithfully,
- Signature of official (s) authorised to operate on SGL/Current Account ___________________________
- Name ___________________________
- Designation ___________________________
- Office stamp of the tenderer ___________________________
------------------------------------------------------------------------------------------------------------
*: Strike out whichever is not applicable.
TERMS AND CONDITIONS FOR REVERSE
REPO AUCTIONS
- Auctions for fixed-rate Overnight Reverse Repo
will be conducted by RBI at Mumbai on all working days except Saturdays.
- All transferable Government of India dated securities
and Treasury Bills that are eligible for SLR will be the eligible securities
for Reverse Repo auctions.
- Bids will be submitted for a minimum amount
of Rs.5 crore and in multiples of Rs.5 crore thereafter.
- All Scheduled Commercial Banks (excluding RRBs)
and Primary Dealers (PDs) maintaining SGL and Current accounts with RBI at
Mumbai will be eligible to participate in the Reverse Repo auctions.
- The bids will be submitted electronically in
the Negotiated Dealing System (NDS). Members of NDS facing genuine systems
problem on any specific day may submit physical bids in sealed cover superscribed
"Overnight Reverse Repo Auction" in the box provided in Mumbai
Office, Reserve Bank of India, by 10.30 A.M. In case of inability to submit
physical bid by 10.30 A.M. in the bid box, intention to submit physical bid
indicating the bid amount must be communicated to the Manager, Securities
Section, Public Accounts Department (PAD), Mumbai Office by fax before
10.30 A.M. and the bid in a sealed cover must be delivered to the Securities
Section, PAD by 11.00 A.M. If such physical bids are not received by 11.00
A.M. the Fax request received will be ignored. It may be noted that the facility
of fax communication on intention to submit the physical bid should not be
used to circumvent the time discipline.
- NDS provides for submission of single or multiple
bids. However, members are advised that as far as possible they should submit
only one bid. In case of physical submission of multiple bids, separate tender
form should be submitted for each bid.
- The Reverse Repo rate will be fixed by RBI from
time to time.
- The Reverse Repo will be conducted as ‘Hold-in-Custody’
type. A constituents’ SGL Account called "Reverse Repo Constituents’
(RRC) SGL Account" will be opened with Reserve Bank of India as a custodial
account. Securities will be held by RBI on behalf of the participants in this
account in case of all Reverse Repo operations. RBI would hold Government
Securities delivered by it under Reverse Repo in the RRC SGL Account on behalf
of the counter parties during the reverse repo period.
- For the purpose of Hold-in-Custody Reverse Repos,
the tenderers will have to authorise RBI to transfer securities to/from RRC
SGL accounts based on their application/bid form. They will also have to authorise
RBI to debit/credit their current accounts and for transferring coupon payments
during the reverse repo period, if any, to RBI. Accrued interest on the security
will be ignored for the pricing of the security. Coupon, if any, will be transferred
to the RBI in the case of Reverse Repos.
- There will be margins for the Government of
India dated securities and eligible Treasury Bills and the amount of securities
transferred to RRC SGL A/C of successful tenderer will be Rs.105 in terms
of face value, per Rs. 100 of reverse repo amount.
- The successful tenderer’s Current Account with
RBI will be debited as per the current procedure under Reverse Repo facility.
Securities will be credited into the tenderer’s RRC SGL Account simultaneously.
On the date of reversal, the tenderer’s RRC SGL Account will be debited and
Current Account credited with the reverse repo amount and interest earned.
For instance, in a Reverse Repo auction where bid amount accepted is Rs.420
crore at a rate of 4.75 per cent the calculations of amount of cash outflow
in the first leg and amount of cash inflow in the second leg (with interest)
will be as under.
Leg 1: Tenderer’s Current Account
Dr. Rs. 420 Cr.
Tenderer’s RRC SGL Account Cr.
Rs. 441 Cr = (Amt.of bid * 105) /100
Leg 2: Tenderer’s RRC SGL Account
Dr. Rs. 441 Cr
Tenderer’s Current Account Cr.
Rs 420,05,46,575 = (Amt. of bid +
Interest for 1 day at 4.75%)
- Securities held by RBI on behalf of banks in
the RRC SGL Account will be counted for SLR purposes.RRC SGL Accounts will
be available on line for members. Since participants can take a printout of
the balance in their accounts from the system, Securities Section, PAD will
discontinue the practice of furnishing daily balance certificate to members.
- The settlement of transactions in the auction
will take place on the same day of the auction. But for intervening holidays,
the Reverse Repo auctions will be for one day except on Fridays when the auction
will be for three days or more, maturing on the following working day.
- The results of the auction will be announced
through the Press Relations Division by 12.00 noon and the same would also
be available at Mumbai Office, RBI, Main Building, Fort, Mumbai 400 001.
- The results will also be communicated to the
individual tenderers in the auction through NDS. In case results are not available
through NDS for any reason, tenderer should check for the result of the auction
from Securities Section, PAD, RBI, Fort, Mumbai 400 001 and make available
funds in the current account for settlement.
- It will be binding on the successful bidders
to deliver the amount allotted in the auction. If the successful bidders do
not honour the allotment, they will be subject to penal action to the extent
of debarring from participating in the auctions for a period of one year.
- The Reserve Bank reserves the right to accept
or reject any or all the tenders wholly or partially, if deemed fit, without
assigning any reason.
- The Reserve Bank shall not be held responsible
for any loss, damage or liability on account of acting as the custodian on
behalf of the participants.
TENDER FORM FOR OVERNIGHT REPO
AUCTION
The Regional Director
Public Accounts Department
Reserve Bank of India
Mumbai Office
Mumbai Tenderer’s RC S.G.L. A/c.
No. with Securities. SG 13 _ _ _ _
Section , P.A.D.
Tenderer’s Current
A/c. No. with D.A.D. ______________
Dear Sir,
Tender for fixed rate Overnight
Repurchase Agreements ( Repo) Auction to be held on ___________by Reserve Bank
of India
I/We* the undersigned hereby submit
tender as set out below for the sale of Government of India dated securities/eligible
Treasury Bills to you on ___________________ with the undertaking that the same
securities will be purchased back from you on __________________________.
1. |
Name of the tenderer & Address
|
|
2. |
Amount bid@ (in figures)
(in words) |
Rs. __________________ crore
Rupees _________________ crore |
3. |
Repo Rate (per cent per annum) fixed by RBI |
|
4. |
Telephone No. |
|
5. |
Fax No. |
|
@Indicates the nominal amount bid for, against tender of securities.
Undertakings
On your acceptance of my/our* tender,
- I/We* agree and undertake to avail the liquidity support, if successful
in the auction, in the form of Repo.
- I/We* also authorize the Reserve Bank of India to be our custodian, to hold
the securities in their Repo Constituents’ (RC)SGL Account, and to credit/debit
my/our* Current Account and RC SGL Account (on repurchase by us) based on
our application form.
- I/We* also authorise the Reserve Bank of India to collect the coupon if
any on the due dates on my/our*behalf and credit the same to my/our current
account.
- I/We* also agree and undertake to confirm the electronic Confirmation Advice
from Reserve Bank of India, Mumbai Office (PAD) as soon as the results are
announced and lodge the SGL Account transfer form for the sale in the manner
and on the day/time indicated therein.
- I/We* agree that the Reserve Bank of India shall not be held responsible
for any loss, damage or liability on account of acting as the Custodian of
our securities. I/We* also agree that I/We* shall indemnify and keep indemnified
the Reserve Bank of India at all times against any loss, damage or liability
whatsoever arising out of acting as Custodian of our securities as above.
- I/We* have also submitted another bid(s)/not submitted any other bids* for
the auction.
Terms and conditions
I/We* have read the terms and conditions for the auction and
undertake to abide by them.
Yours faithfully,
- Signature of official (s) authorised to operate on SGL/Current Account __________________________
- Name __________________________
- Designation __________________________
- Office stamp of the tenderer ___________________________
* Strike out whichever is not applicable
TERMS AND CONDITIONS FOR REPO AUCTIONS
1. Auctions for liquidity support in the form of overnight
fixed-rate Repo will be conducted by the Reserve Bank of India at Mumbai on
all working days except Saturdays.
2. All transferable Government of India dated securities and
Treasury Bills that are eligible for SLR will be the eligible securities for
Repo auctions.
3. Bids will be submitted for a minimum amount of Rs.5 crore
and in multiples of Rs.5 crore thereafter.
4. All Scheduled Commercial Banks (excluding Regional Rural
Banks) and Primary Dealers having SGL and Current Accounts with RBI, Mumbai
will be eligible to participate in the Repo auctions.
5. The bids will be submitted electronically in the Negotiated
Dealing System (NDS). Members of NDS facing genuine systems problem on any specific
day may submit physical bids in sealed cover superscribed "Overnight
Repo Auction" in the box provided in Mumbai Office, RBI, by 10.30 A.M.
In case of inability to submit physical bid by 10.30 A.M. in the bid box, intention
to submit physical bid indicating the bid amount must be communicated to the
Manager, Securities Section, Public Accounts Department (PAD), Mumbai
Office by fax before 10.30 A.M. and the bid in a sealed cover must be delivered
to the Securities Section, PAD by 11.00 A.M. If such physical bids are not received
by 11.00 A.M. the Fax request received will be ignored. It may be noted that
the facility of fax communication on intention to submit the physical bid should
not be used to circumvent the time discipline.
6. NDS provides for submission of single or multiple bids.
However, members are advised that as far as possible they should submit only
one bid. In case of physical submission of multiple bids, separate tender form
should be submitted for each bid.
7. The Repo rate will be fixed by Reserve Bank of India from
time to time.
8. The Repo will be conducted as ‘Hold-in-Custody’ type. A
constituents’ SGL Account called "Repo Constituents’ (RC) SGL Account"
will be opened with RBI as a custodial account. Securities held in tenderer’s
RC SGL Account will be transferred to RBI’s Subsidiary Account during the period
of Repo.
9. The tenderer should hold sufficient quantum of securities
for the purpose of collateral in his RC SGL account (inclusive of 5 per cent
margin), which will be automatically debited by RBI to the extent required.
In case of insufficient balance in this account, the tenderer should transfer
the securities from his SGL account to RC SGL account by RC transfer functionality
in the LAF module and submit the SGL Form by fax (for early completion of settlement)
for approval and finally deliver completed SGL form before 2.30 p.m.
10. For the purpose of Hold-in-Custody Repos, the applicants
will have to authorise RBI to transfer securities from/to RC SGL accounts based
on their application/bid form. They will also have to authorise RBI to credit/debit
their current accounts and for transferring coupon payments during the repo
period, if any to the tenderer. Accrued interest on the securities will be ignored
for the purpose of pricing of the security. RBI will collect the coupon payment,
if any, on the due date and credit the same to the party’s Current Account in
the case of Repo.
11. There will be margins for the Government of India dated
securities and eligible Treasury Bills and the amount of securities transferred
from the RC SGL a/c of successful tenderer will be Rs.105, in terms of face
value, per Rs. 100 of repo amount..
12. The successful tenderer’s Current Account with RBI will
be credited as per the current procedure under Repo facility. Securities will
be debited from the tenderer’s RC SGL Account simultaneously. On the date of
reversal the tenderer’s RC SGL Account will be credited and Current Account
will be debited with the repo amount and interest payable. It may be noted that
the second leg of all LAF transactions is automatic and takes place at the 'begin
of day'. Accordingly, participants must ensure sufficient balance in their current
account for completion of settlement. For instance, in a Repo auction where
bid amount accepted is Rs.500 crore at a cut off rate of 6.00 per cent the calculations
of inflow of cash in the first leg and outflow of cash in the second leg will
be as under:
Leg 1: Tenderer’s Current Account Cr. Rs.500 Crore
Tenderer’s RC SGL Account Dr. Rs.525 Crore (Amt.of bid
x 105/100)
Leg 2: Tenderer’s RC SGL Account Cr. Rs.525 Crore
Tenderer’s Current Account Dr. Rs.500, 08, 21,918
(Amt. of bid + 1 day’s interest at 6.00 per cent)
13. The repo facility will only be available against eligible
securities held in excess ofthe securities required for maintaining the prescribed
Statutory Liquidity Ratio (SLR). Therefore, while tendering bids with RBI for
repo auction, banks must ensure that the collateral to be offered by them, on
acceptance of their bid, represents their excess SLR holding. In case of default
in maintenance of SLR requirement arising out of securities having been sold
to RBI as collateral under repo, the defaulting bank may be debarred from participation
in LAF auctions for a specified period as may be decided by RBI. Further the
penal provisions for default in maintaining SLR requirements will also apply
as prescribed under Section 24 of the Banking Regulation Act, 1949. Securities
falling under shut period either on the date of transaction or on the date of
reversal will not be eligible for collateral assignment.
14. Securities (unutilized) held in the RC SGL Account will
be counted for SLR purpose. However, securities transferred to RBI under Repos
will not be counted for SLR purposes. For making use of securities available
in RC Account it has to be transferred back to principal SGL by RC Withdrawal
functionality in the same manner as for RC Transfer functionality. As the RC
SGL Account is available online in PDO-NDS, members may generate the Account
Balance statement at their end. Securities Section, PAD will discontinue the
practice of furnishing daily balance certificates to members.
15. The settlement of transactions in the auction will take
place on the same day. But for the intervening holidays, the Repo auctions will
be for one day except on Fridays when the auction will be for three days or
more, maturing on the following working day.
16. The results of the auction will be announced through the
Press Relations Division by 12.00 noon and the same would also be displayed
at Mumbai Office, RBI, Main Building, Fort, Mumbai 400 001.
17. The results will also be communicated to the individual
tenderers in the auction through NDS. In case results are not available through
NDS for any reason, tenderer should check for the result of the auction and
if successful must ensure sufficient balance in RC Account.
18. It will be binding on the successful bidders in the auction
to accept the allotted amount in full. If the successful bidders do not honour
the allotment, they will be subject to penal action, to the extent of being
debarred from participating in the auctions for a period of one year.
19. Any irregular utilization of the facility would be subject
to higher interest charge and the amount drawn down would be required to be
repaid forthwith.
20. The Reserve Bank reserves the right to accept or reject
any or all the tenders wholly or partially, if deemed fit, without assigning
any reason.
21. The Reserve Bank shall not be held responsible for any
loss, damage or liability on account of acting as the Custodian on behalf of
the participants.