RBI Notifies Updated Repo Directions, 2025, Including Municipal Debt Securities
The RBI has updated its Repo Directions, 2025, to include municipal debt securities as eligible instruments for repo and reverse repo transactions.
The Reserve Bank of India recently issued a notification on November 11, 2025, regarding the Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025.
The Central Government, in exercise of the powers given by section 45U (clause (e)) of the Reserve Bank of India Act, 1934 (2), has notified that Municipal Debt Securities, having the meaning assigned to it in the Securities and Exchange Board of India Act, 1992 (15), of the rules or regulations made thereunder, are to be security under the said section for the purposes of “repo” and “reverse repo” through notification dated October 22, 2025, in the Official Gazette.
The rules are now being updated to include municipal debt securities as eligible for repo transactions. The Reserve Bank of India has issued the updated Master Direction-Repurchase Transactions (Repo) Directions, 2025.
These directions have been issued by the Reserve Bank in powers given under section 45W of the Reserve Bank of India Act, 1934, read with section 45U of the Act.
Note: This notification will come into force soon.
For complete information refer to the official notification-
