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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues Master Direction - RBI (Repurchase Transactions (Repo)) Directions, 2025

11-Nov-2025 | RBI/FMRD/2025-26/142 FMRD.DIRD.04/14.03.038/2025-26

RBI has issued Master Direction - RBI (Repurchase Transactions (Repo)) Directions, 2025 with effect from 11th November 2025. Key Highlights: 1. Applicability - Applicable to repo transactions executed on recognized stock exchanges, RBI-authorized Electronic Trading Platforms (ETPs), and Over-the-Counter (OTC) markets. Not applicable to repos under the Liquidity Adjustment Facility (LAF) or Marginal Standing Facility (MSF). 2. Eligible Securities for Repo - Repos can use Government securities, listed corporate bonds/debentures, Commercial Papers (CPs), Certificates of Deposit (CDs), Debt Exchange-Traded Funds (ETFs), Municipal Debt Securities, or other notified local authority securities. 3. Eligible Participants - Participants include regulated entities (banks, NBFCs), listed corporates, specific unlisted companies holding special Government-issued securities, All India Financial Institutions (AIFIs) such as NABARD, SIDBI, NHB, NaBFID, and Exim Bank, and any RBI-approved entity. 4. Operational Framework - Repo tenor minimum 1 day to maximum 1 year. Trading permitted on exchanges, ETPs, or OTC markets. 5. Collateral Management, Haircuts, and Pricing - Collateral must be priced transparently at market rates. Minimum haircuts: 2% for listed corporate bonds/debentures, 1.5% for CPs/CDs, and 2% for local authority securities; higher margins may apply based on risk or liquidity. 6. Reporting, Accounting, and Regulatory Treatment - All repos must be reported within 15 minutes to approved systems (F-TRAC for corporate repos, CROMS for government repos). RBI-regulated entities must follow Annex II accounting norms. For more information, please refer to the attached document.

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