Reserve Bank of India (RBI) has reduced the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points, lowering it from 6.50% to 6.25%, effective immediately. This decision was made by the Monetary Policy Committee (MPC) as part of the monetary policy statement issued on February 7, 2025. Following this change, the Standing Deposit Facility (SDF) rate has been adjusted to 6.00%, while the Marginal Standing Facility (MSF) rate is now 6.50%. All other terms and conditions of the existing LAF scheme remain unchanged.
Reserve Bank of India
RBI/2024-25/109
FMOD.MAOG.No.150/01.01.001/2024-25
February 07, 2025
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility – Change in rates
As announced in the Monetary Policy Statement dated February 07, 2025, 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.
2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 6.00 per cent and 6.50 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
