RBI in its Second Bi-Monthly Monetary Policy, 2019-20 has decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 5.75 per cent from 6.0 per cent with immediate effect.
Consequently, the reverse repo rate under the LAF stands adjusted to 5.50 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0 per cent.
The MPC also decided to change the stance of monetary policy from neutral to accommodative.
Reserve Bank of India
RBI/2018-19/200
REF.No.MPD.BC.387/07.01.279/2018-19
June 06, 2019
All Primary Dealers,
Standing Liquidity Facility for Primary Dealers
In the Second Bi-monthly Monetary Policy Statement 2019-20 of the Monetary Policy Committee (MPC) of June 06, 2019, the policy repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 25 basis points to 5.75 per cent from 6.00 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 5.75 per cent with effect from June 06, 2019.
Yours faithfully,
(Janak Raj)
Principal Adviser
Change in Bank Rate
RBI/2018-19/199
DBR.No.Ret.BC.44/12.01.001/2018-19
June 06, 2019
The Chairperson / CEOs of all Scheduled and Non Scheduled Banks
Dear Sir / Madam,
Change in Bank Rate
Please refer to our circular DBR.No.Ret.BC.33/12.01.001/2018-19 dated April 04, 2019 on the captioned subject.
2. As announced in the Second Bi-Monthly Monetary Policy Statement 2019-20 of June 06, 2019, the Bank Rate is revised downwards by 25 basis points from 6.25 per cent to 6.00 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
(Shrimohan Yadav)
Chief General Manager
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 (9.25 per cent) or Bank Rate plus 5.0 percentage points (11.25 per cent). | Bank Rate plus 3.0 percentage points (9.00 per cent) or Bank Rate plus 5.0 percentage points (11.00 per cent). |
Marginal Standing Facility
RBI/2018-2019/198
FMOD.MAOG. No.133/01.18.001/2018-19
June 6, 2019
All Marginal Standing Facility (MSF) participants
Madam/Sir,
Marginal Standing Facility
As announced in the Second Bi-monthly Monetary Policy Statement, 2019-20, 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 6.00 per cent to 5.75 per cent with immediate effect.
2. Consequently, the Marginal Standing Facility (MSF) rate stands adjusted to 6.00 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
Liquidity Adjustment Facility – Repo and Reverse Repo Rates
RBI/2018-2019/197
FMOD.MAOG.No.132/01.01.001/2018-19
June 6, 2019
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility – Repo and Reverse Repo Rates
As announced in the Second Bi-monthly Monetary Policy Statement, 2019-20, 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 6.00 per cent to 5.75 per cent with immediate effect.
2. Consequently, the Reverse Repo rate under the LAF stands adjusted to 5.50 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
