Reserve Bank of India
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RBI/2019-20/240
DOR.No.Ret.BC.74/12.01.001/2019-20
May 22, 2020
All Scheduled and Non Scheduled Banks
Dear Sir / Madam
Change in Bank Rate
Please refer to our circular DBR.No.Ret.BC.53/12.01.001/2019-20 dated March 27, 2020 on the captioned subject.
2. As announced in the Monetary Policy Statement 2020-21 dated May 22, 2020, the Bank Rate is revised downwards by 40 basis points from 4.65 per cent to 4.25 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,
(Dr.S.K.Kar)
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 (7.65 per cent) or Bank Rate plus 5.0 percentage points (9.65 per cent). | Bank Rate plus 3.0 percentage points (7.25 per cent) or Bank Rate plus 5.0 percentage points (9.25 per cent). |
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Reserve Bank of India
RBI/2019-20/238
REF.No.MPD.BC.391/07.01.279/2019-20
May 22, 2020
All Primary Dealers,
Standing Liquidity Facility for
Primary Dealers
In the Monetary Policy Statement 2020-21 dated May 22, 2020, the policy repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 40 basis points to 4.00 per cent from 4.40 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 4.00 per cent with effect from May 22, 2020.
Yours faithfully,
(Deba Prasad Rath)
Adviser
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Reserve Bank of India
RBI/2019-20/237
FMOD.MAOG.No.142/01.01.001/2019-20
May 22, 2020
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility – Repo and Reverse Repo Rates
As announced in the Monetary Policy Statement, 2020-21, today, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 40 basis points from 4.40 per cent to 4.00 per cent with immediate effect.
2. Consequently, the Reverse Repo rate under the LAF stands adjusted to 3.35 per cent with immediate effect.
3. All other terms and conditions of the extant LAF Scheme will remain unchanged.
Yours sincerely,
(Radha Shyam Ratho)
Chief General Manager
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Reserve bank of India
RBI/2019-20/236
FMOD.MAOG.No.143/01.18.001/2019-20
May 22, 2020
All Marginal Standing Facility (MSF) participants
Madam/Sir,
Marginal Standing Facility
As announced in the Monetary Policy Statement, 2020-21 today, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 40 basis points from 4.40 per cent to 4.00 per cent with immediate effect.
2. Consequently, the Marginal Standing Facility (MSF) rate stands adjusted from 4.65 per cent to 4.25 per cent with immediate effect.
3. All other terms and conditions of the extant MSF scheme will remain unchanged.
Yours sincerely
(Radha Shyam Ratho)
Chief General Manager
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