Reserve Bank of India
RBI/2014-2015/487
FMOD.MAOG.No.106/01.01.001/2014-15
March 04, 2015
All Scheduled Commercial Banks (excluding RRBs), Scheduled Urban Co-operative Banks and Standalone Primary Dealers
Madam / Sir,
Liquidity Adjustment Facility – Repo and Reverse Repo Rates
As announced by the Governor today, it has been decided to reduce the Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 7.75 per cent to 7.50 per cent with immediate effect.
2. Consequent to the change in the Repo rate, the Reverse Repo rate under the LAF will stand adjusted to 6.50 per cent with immediate effect.
3. All other terms and conditions of the current LAF Scheme will remain unchanged.
4. Please acknowledge receipt.
Yours sincerely
(M. Rajeshwar Rao)
Chief General Manager
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RBI/2014-15/489
DCBR.BPD.(PCB/RCB).Cir.No.19/16.11.00/2014-15
March 4, 2015
The Chief Executive Officer
All Primary (Urban) Co-operative Banks/
State and Central Co-operative Banks (StCBs/ CCBs)
Madam / Dear Sir,
Revision in Bank Rate
Please refer to our circular DCBR.BPD.(PCB/RCB).Cir.No.12/16.11.00/2014-15 dated January 15, 2015 on the captioned subject.
2. As announced in the Monetary Policy Statement dated March 4, 2015, the Bank Rate stands adjusted by 25 basis points from 8.75 per cent to 8.5 per cent with effect from March 4, 2015.
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. The interest rate on refinance for SSI under Section 17(2) (bb) read with Section 17(4)(c) of the Reserve Bank of India Act, 1934, also stands revised to 8.5 per cent with effect from March 4, 2015.
Yours faithfully,
(Suma Varma)
Principal Chief General Manager
Annex
Penal Interest Rates which are linked to the Bank Rate
|
Item |
Existing Rate |
Revised Rate (Effective from March 4, 2015) |
| Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls) | Bank Rate plus 3.0 percentage points (11.75 per cent) or Bank Rate plus 5.0 percentage points (13.75 per cent) | Bank Rate plus 3.0 percentage points (11.5 per cent) or Bank Rate plus 5.0 percentage points (13.5 per cent) |
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RBI/2014-15/486
DBR.No.Ret.BC.73/12.01.001/2014-15
March 04, 2015
All Scheduled Commercial Banks,
Local Area Banks and RRBs
Dear Sir,
Change in Bank Rate
Please refer to circular DBR.No.Ret.BC.61/12.01.001/2014-15 dated January 15, 2015 on the captioned subject.
2. As announced in the Press Release 2014-2015/1847 dated March 04, 2015, the Bank Rate stands adjusted by 25 basis points from 8.75 per cent to 8.50 per cent with effect from March 04, 2015.
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.
4. Please acknowledge receipt.
Yours faithfully
(Sudha Damodar)
Chief General Manager
Encl: as above
Annex
Penal Interest Rates which are linked to the Bank Rate
| Item | Existing Rate | Revised Rate (Effective from March 04, 2015) |
| Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls). | Bank Rate plus 3.0 percentage points (11.75 per cent) or Bank Rate plus 5.0 percentage points (13.75 per cent). | Bank Rate plus 3.0 percentage points (11.50 per cent) or Bank Rate plus 5.0 percentage points (13.50 per cent). |
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RBI/2014-15/485
REF.No.MPD.BC. 377/07.01.279/2014-15
Phalguna 13,1936(Saka)
March 4, 2015
To
All Scheduled Banks [excluding Regional Rural Banks (RRBs)]
and Primary Dealers
Dear Sir/Madam,
Standing Liquidity Facilities for
Banks and Primary Dealers
Please refer to the Statement by Dr. Raghuram G Rajan, Governor on Monetary Policy dated March 4, 2015, in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 25 basis points from 7.75 per cent to 7.50 per cent with immediate effect.
2. Accordingly, the Standing Liquidity Facilities provided to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate, i.e., at 7.50 per cent with effect from March 4, 2015.
3. As per the circular No. MPD.BC. 376/07.01.279/2014-15 dated February 3, 2015, the Export Credit Refinance (ECR) facility was merged with the system level liquidity provision with effect from February 7, 2015, but refinancing availed up to February 6, 2015 may continue till its maturity. In consonance with the reduced LAF repo rate, the interest rate applicable to outstanding ECR will be at the revised rate of 7.50 per cent with effect from March 4, 2015.
Yours faithfully,
(B.K. Bhoi)
Adviser-in- Charge
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RBI/2014-2015/488
FMOD.MAOG.No.107/01.18.001/2014-15
March 04, 2015
All Scheduled Commercial Banks (excluding RRBs)
Madam / Sir,
Marginal Standing Facility
As announced by the Governor today, it has been decided to reduce the Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 7.75 per cent to 7.50 per cent with immediate effect.
2. Consequent to the change in the Repo rate, the Marginal Standing Facility (MSF) rate will stand adjusted to 8.50 per cent with immediate effect.
3. All other terms and conditions of the current MSF scheme will remain unchanged.
4. Please acknowledge receipt.
Yours sincerely
(M. Rajeshwar Rao)
Chief General Manager
