The Reserve Bank of India (RBI) has reduced the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points, bringing it down from 6.50% to 6.25%, effective immediately. This decision, announced in the bi-monthly Monetary Policy Statement for 2024-25, impacts liquidity provisions in the financial system. Consequently, the Standing Liquidity Facility (SLF) offered to Primary Dealers (PDs) as collateralized liquidity support from the RBI will now be available at the revised repo rate of 6.25%. The adjustment aims to align liquidity operations with the updated monetary policy stance.
Reserve Bank of India
RBI/2024-25/110
REF.No.MPD.BC.398/07.01.279/2024-25 Dated: February 07, 2025
All Primary Dealers,
Standing Liquidity Facility for Primary Dealers
As announced in the bi-monthly Monetary Policy Statement, 2024-25, today, 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. 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 6.25 per cent with immediate effect.
Yours faithfully,
(Praggya Das)
Adviser-in-Charge
