Reserve Bank of India

RBI/2019-20/78
REF.No.MPD.BC.389/07.01.279/2019-20

October 04, 2019

All Primary Dealers,

Standing Liquidity Facility for
Primary Dealers

In the Fourth Bi-monthly Monetary Policy Statement 2019-20 of the Monetary Policy Committee (MPC) of October 4, 2019, the policy repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 25 basis points to 5.15 per cent from 5.40 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 5.15 per cent with effect from October 4, 2019.

Yours faithfully,

(Janak Raj)
Principal Adviser

Change in Bank Rate

RBI/2019-20/77
DBR.No.Ret.BC.19/12.01.001/2019-20

October 04, 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.10/12.01.001/2019-20 dated August 07, 2019, on the captioned subject.

2. As announced in the Fourth Bi-Monthly Monetary Policy Statement 2019-20 of October 04, 2019, the Bank Rate is revised downwards by 25 basis points from 5.65 per cent to 5.40 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 (8.65 per cent) or Bank Rate plus 5.0 percentage points (10.65 per cent). Bank Rate plus 3.0 percentage points (8.40 per cent) or Bank Rate plus 5.0 percentage points (10.40 per cent).

Marginal Standing Facility

RBI/2019-2020/76
FMOD.MAOG.No.137/01.18.001/2019-20

October 4, 2019

All Marginal Standing Facility (MSF) participants

Madam/Sir,

Marginal Standing Facility

As announced in the Fourth 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 5.40 per cent to 5.15 per cent with immediate effect.

2. Consequently, the Marginal Standing Facility (MSF) rate stands adjusted to 5.40 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/2019-2020/75
FMOD.MAOG. No.136/01.01.001/2019-20

October 4, 2019

All Liquidity Adjustment Facility (LAF) participants

Madam/Sir,

Liquidity Adjustment Facility – Repo and Reverse Repo Rates

As announced in the Fourth 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 5.40 per cent to 5.15 per cent with immediate effect.

2. Consequently, the Reverse Repo rate under the LAF stands adjusted to 4.90 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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