1.External Commercial Borrowings (ECB) Policy – ECB facility for Resolution Applicants under Corporate Insolvency Resolution Process.
External Commercial Borrowings (ECB) Policy – New ECB Framework”, ECB proceeds cannot be utilised for repayment of domestic Rupee loans, except when the ECB is availed from a Foreign Equity Holder as defined in the aforesaid framework.
2 Standing Liquidity Facility for Primary Dealers
a.In the Sixth Bi-monthly Monetary Policy Statement 2018-19 of the Monetary Policy Committee (MPC) of February 7, 2019, the repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 25 basis points to 6.25 per cent from 6.50 per cent with immediate effect.
b. Accordingly, the Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate of 6.25 per cent with effect from February 07, 2019.
3.Credit Flow to Agriculture- Collateral free agricultural loans
Keeping in view the overall inflation and rise in agriculture input cost over the years since 2010, it has been decided to raise the limit for collateral free agricultural loans from the existing level of ₹1 lakh to ₹1.6 lakh. Accordingly, banks may waive marginrequirements for agricultural loans upto ₹1.6 lakh.
4.Change in Bank Rate
As announced in the Sixth Bi-Monthly Monetary Policy Statement 2018-19 dated February 07, 2019, the Bank Rate stands adjusted by 25 basis points from 6.75 per cent to 6.50 per cent with immediate effect.
5.Marginal Standing Facility
a.As announced in the Sixth Bi-monthly Monetary Policy Statement, 2018-19, today, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.50 per cent to 6.25 per cent with immediate effect.
b. Consequently, the Marginal Standing Facility (MSF) rate stands adjusted to 6.50 per cent with immediate effect.
c. All other terms and conditions of the extant MSF scheme will remain unchanged.
6.Liquidity Adjustment Facility – Repo and Reverse Repo Rates
a.As announced in the Sixth Bi-monthly Monetary Policy Statement, 2018-19, today, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect.
b. Consequently, the Reverse Repo rate under the LAF stands adjusted to 6.0 per cent with immediate effect.
c. All other terms and conditions of the extant LAF Scheme will remain unchanged.
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