Change in Bank Rate
The Bank Rate is revised downwards by 35 basis points from 6.00 per cent to 5.65 per cent with immediate effect.
All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as given below
Penal Interest Rates which are linked to the Bank Rate
| 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 (9.00 per cent) or Bank Rate plus 5.0 percentage points (11.00 per cent). | Bank Rate plus 3.0 percentage points (8.65 per cent) or Bank Rate plus 5.0 percentage points (10.65 per cent). |
Standing Liquidity Facility for Primary Dealers
The policy repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 35 basis points to 5.40 per cent from 5.75 per cent with immediate effect.
Marginal Standing Facility
It has been decided by the Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 35 basis points from 5.75 per cent to 5.40 per cent with immediate effect.
Consequently, the Marginal Standing Facility (MSF) rate stands adjusted to 5.65 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
It has been decided by the Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 35 basis points from 5.75 per cent to 5.40 per cent with immediate effect.
Consequently, the Reverse Repo rate under the LAF stands adjusted to 5.15 per cent with immediate effect.
All other terms and conditions of the extant LAF Scheme will remain unchanged.
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