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Master Direction – Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025
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RBI/FMRD/2025-26/142
FMRD.DIRD.04/14.03.038/2025-26
November 11, 2025
To
All participants in repo market
Dear Sir / Madam
Master Direction – Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025
Please refer to the Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 dated July 24, 2018, as amended from time to time.
2. The Central Government in exercise of the powers conferred by clause (e) of section 45U of the Reserve Bank of India Act, 1934 (2 of 1934), has specified the Municipal Debt Securities, having the meaning assigned to it in the Securities and Exchange Board of India Act, 1992 (15 of 1992) or the rules or regulations made thereunder, to be as security under the said section for the purposes of “repo” and “reverse repo” vide notification dated October 22, 2025 in the Official Gazette.
3. Accordingly, the aforesaid Directions are being updated to include Municipal Debt Securities as eligible securities for repo transactions. The Master Direction – Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025, have been issued today and are enclosed herewith.
4. These Directions have been issued by the Reserve Bank in exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934, read with section 45U of the Act and of all the powers enabling it in this behalf.
5. These Directions shall be applicable with immediate effect.
FMRD.DIRD.04/14.03.038/2025-26
November 11, 2025
To
All participants in repo market
Dear Sir / Madam
Master Direction – Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025
Please refer to the Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 dated July 24, 2018, as amended from time to time.
2. The Central Government in exercise of the powers conferred by clause (e) of section 45U of the Reserve Bank of India Act, 1934 (2 of 1934), has specified the Municipal Debt Securities, having the meaning assigned to it in the Securities and Exchange Board of India Act, 1992 (15 of 1992) or the rules or regulations made thereunder, to be as security under the said section for the purposes of “repo” and “reverse repo” vide notification dated October 22, 2025 in the Official Gazette.
3. Accordingly, the aforesaid Directions are being updated to include Municipal Debt Securities as eligible securities for repo transactions. The Master Direction – Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025, have been issued today and are enclosed herewith.
4. These Directions have been issued by the Reserve Bank in exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934, read with section 45U of the Act and of all the powers enabling it in this behalf.
5. These Directions shall be applicable with immediate effect.
Yours faithfully
(Dimple Bhandia)
Chief General Manager
(Dimple Bhandia)
Chief General Manager
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