Summary: The Reserve Bank of India has announced a 25 basis point increase in the policy repo rate under the Liquidity Adjustment Facility (LAF), raising it from 5.25 per cent to 5.50 per cent with immediate effect. The decision was taken by the Monetary Policy Committee (MPC) and announced in the Monetary Policy Statement dated October 07, 2026. Consequent to the repo rate increase, the standing deposit facility (SDF) rate has been adjusted to 5.25 per cent and the marginal standing facility (MSF) rate to 5.75 per cent, also with immediate effect. The RBI has clarified that all other terms and conditions of the extant LAF Scheme will remain unchanged.
Reserve Bank of India
RBI/2026-27/282FMOD.MAOG.No.154/01.01.001/2026-27 | Dated: October 07, 2026
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility – Change in rates
As announced in the Monetary Policy Statement dated October 07, 2026, it has been decided by the Monetary Policy Committee (MPC) to increase the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.25 per cent to 5.50 per cent with immediate effect.
Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 5.25 per cent and 5.75 per cent respectively, with immediate effect.
All other terms and conditions of the extant LAF Scheme will remain unchanged.
Yours sincerely,
(G. Seshsayee)Chief General Manager
