Reserve Bank of India
RBI/2022-23/102
REF.No.MPD.BC.394/07.01.279/2022-23
August 05, 2022
All Primary Dealers,
Standing Liquidity Facility for Primary Dealers
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 50 basis points from 4.90 per cent to 5.40 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 5.40 per cent with immediate effect.
Yours faithfully,
(Muneesh Kapur)
Adviser-in-Charge
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Reserve Bank of India
RBI/2022-23/101
FMOD.MAOG.No.146/01.01.001/2022-23
August 05, 2022
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility- Change in rates
As announced in the Monetary Policy Statement dated August 05, 2022, it has been decided by the Monetary Policy Committee (MPC) to increase the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points from 4.90 per cent to 5.40 per cent with immediate effect.
2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 5.15 per cent and 5.65 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
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RBI/2022-23/103
DOR.RET.REC.59/12.01.001/2022-23
August 05, 2022
All Banks
Madam/Sir,
Change in Bank Rate
Please refer to our circular DOR.RET.REC.44/12.01.001/2022-23 dated June 08, 2022 on the captioned subject.
2. As announced in the Monetary Policy Statement 2022-23 dated August 05, 2022, the Bank Rate is revised upwards by 50 basis points from 5.15 per cent to 5.65 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 (8.15 per cent) or Bank Rate plus 5.0 percentage points (10.15 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). |
