RBI notification on change in Cash Reserve Ratio (CRR) from 4.00 percent to 4.50 percent, Change in Bank Rate from 4.25 per cent to 4.65 per cent, Change in Liquidity Adjustment Facility (LAF) to 4.40 per cent from 4.00 per cent, change in standing deposit facility (SDF) rate from 3.75 per cent to 4.15 per cent and change in marginal standing facility (MSF) rate from 4.25 per cent to 4.65 per cent.
Reserve Bank of India
RBI/2022-23/46
DOR.RET.REC.33/12.01.001/2022-23
May 04, 2022
All Banks
Madam/Sir,
Maintenance of Cash Reserve Ratio (CRR)
Please refer to our circular DOR.No.Ret.BC.35/12.01.001/2020-21 dated February 05, 2021 and relative notification on the captioned subject.
2. As announced in the Governor’s Statement dated May 04, 2022, it has been decided to increase the Cash Reserve Ratio (CRR) of all banks by 50 basis points from 4.00 percent to 4.50 percent of their Net Demand and Time Liabilities (NDTL), effective from the reporting fortnight beginning May 21, 2022.
3. A copy of the relative notification DOR.RET.REC.34/12.01.001/2022-23 dated May 04, 2022 is enclosed.
Yours faithfully,
(Prakash Baliarsingh)
Chief General Manager
Encl. : As above
DOR.RET.REC.34/12.01.001/2022-23
May 04, 2022
NOTIFICATION
In exercise of the powers conferred under the sub-section (1) of Section 42 of the Reserve Bank Act, 1934 and sub-section (1) of Section 18 of the Banking Regulation Act, 1949 (10 of 1949) read with section 56 thereof, and in partial modification of the earlier notification DOR.No.Ret.BC.38/12.01.001/2020-21 dated February 05, 2021, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every bank shall be 4.50 per cent of its net demand and time liabilities effective from the reporting fortnight beginning May 21, 2022.
(Jayant Kumar Dash)
Executive Director
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Reserve Bank of India
RBI/2022-23/45
DOR.RET.REC.32/12.01.001/2022-23
May 04, 2022
All Banks
Madam/Sir,
Change in Bank Rate
Please refer to our circular DOR.No.Ret.BC.74/12.01.001/2019-20 dated May 22, 2020 on the captioned subject.
2. As announced in the Monetary Policy Statement 2022-23 dated May 04, 2022, the Bank Rate is revised upwards by 40 basis points from 4.25 per cent to 4.65 per cent with immediate effect.
3. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in the Annex.
Yours faithfully,
(Prakash Baliarsingh)
Chief General Manager
Encl. : As above
Annex
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 (7.25 per cent) or Bank Rate plus 5.0 percentage points (9.25 per cent). |
Bank Rate plus 3.0 percentage points (7.65 per cent) or Bank Rate plus 5.0 percentage points (9.65 per cent). |
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Reserve Bank of India
RBI/2022-23/44
REF.No.MPD.BC.S33/07.01.279/2022-23
May 4, 2022
All Primary Dealers,
Standing Liquidity Facility for Primary Dealers
In the Monetary Policy Statement 2022-23, dated May 4, 2022, the policy repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 40 basis points to 4.40 per cent from 4.00 per cent with immediate effect.
2. 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 4.40 per cent with effect from May 4, 2022.
Yours faithfully,
(Muneesh Kapur)
Adviser-in-Charge
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Reserve Bank of India
RBI/2022-23/42
FMOD.MAOG.No.144/01.01.001/2022-23
May 04, 2022
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility- Change in rates
As announced in the Monetary Policy Statement, 2022-23, today, it has been decided by the Monetary Policy Committee (MPC) to increase the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 40 basis points from 4.00 per cent to 4.40 per cent with immediate effect.
2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted from 3.75 per cent to 4.15 per cent and from 4.25 per cent to 4.65 per cent respectively, with immediate effect.
3. All other terms and conditions of the extant LAF Scheme will remain unchanged.
Yours sincerely,
(G. Seshsayee)
Chief General Manager
