Standing Liquidity Facility for Primary Dealers
The policy repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 25 basis points to 6.00 per cent from 6.25 per cent with immediate effect.
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 6.00 per cent with effect from April 04, 2019.
Change in Bank Rate
The Bank Rate is revised downwards by 25 basis points from 6.50 per cent to 6.25 per cent with immediate effect.
The penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised
| Item | Existing Rate | Revised Rate (With immediate effect) |
| Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls). | Bank Rate plus 3.0 percentage points (9.50 per cent) or Bank Rate plus 5.0 percentage points (11.50 per cent). | Bank Rate plus 3.0 percentage points (9.25 per cent) or Bank Rate plus 5.0 percentage points (11.25 per cent). |
Marginal Standing Facility
The Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.25 per cent to6.00 per cent with immediate effect.
The Marginal Standing Facility (MSF) rate stands adjusted to 6.25 per cent with immediate effect.
All other terms and conditions of the extant MSF scheme will remain unchanged.
Liquidity Adjustment Facility – Repo and Reverse Repo Rates
The Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.25 per cent to 6.00 per cent with immediate effect.
The Reverse Repo rate under the LAF stands adjusted to 5.75 per cent with immediate effect.
All other terms and conditions of the extant LAF Scheme will remain unchanged.
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