RBI Master Direction – Repo Transactions, 2025

Current Context: The Reserve Bank of India (RBI) issued the Master Direction – Repurchase Transactions (Repo) Directions, 2025 on 11 November 2025 under Section 45W of the RBI Act, 1934.

• These directions update the earlier 2018 framework and expand the list of eligible collateral.
• For the first time, Municipal Debt Securities have been included along with Government Securities, corporate bonds, Commercial Papers (CPs), Certificates of Deposit (CDs), and Debt Exchange Traded Funds (ETFs).
• The rules apply to repos conducted on stock exchanges, electronic trading platforms, and OTC markets, but exclude RBI’s Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF).
• They define norms for tenor, tri‑party repo systems, reporting, settlement, pricing, haircuts, accounting, and compliance.

Question:

Q.1 Which collateral did the Reserve Bank of India include for the first time in the 2025 repo directions?
a) Municipal Debt Securities
b) Sovereign Gold Bonds
c) PSL Certificates
d) InvIT units

Answer: a) For the first time, Municipal Debt Securities have been included along with Government Securities, corporate bonds, Commercial Papers (CPs), Certificates of Deposit (CDs), and Debt Exchange Traded Funds (ETFs).