The Reserve Bank of India (RBI) announced a reduction in the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points, bringing it down from 6.25 percent to 6.00 percent. This decision, made by the Monetary Policy Committee (MPC), is effective immediately as of April 9, 2025. Consequently, the standing deposit facility (SDF) rate has been adjusted to 5.75 percent, and the marginal standing facility (MSF) rate now stands at 6.25 percent. The RBI clarified that all other terms and conditions of the existing LAF scheme will remain unchanged. This rate cut is communicated to all participants of the Liquidity Adjustment Facility.
RESERVE BANK OF INDIA
RBI/2025-26/22
FMOD.MAOG.No.151/01.01.001/2025-26 Dated: April 09, 2025
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility – Change in rates
As announced in the Monetary Policy Statement dated April 09, 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 6.25 per cent to 6.00 per cent with immediate effect.
2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 5.75 per cent and 6.25 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
