**Policy Summary: RBI/2022-23/101 FMOD.MAOG.No.146/01.01.001/2022-23**
**Date:** August 05, 2022
**Subject:** Liquidity Adjustment Facility (LAF) - Change in Rates
**Summary:**
This policy announces an increase in the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points, from 4.90 percent to 5.40 percent, effective immediately. This decision was made by the Monetary Policy Committee (MPC) as stated in the Monetary Policy Statement dated August 05, 2022.
Consequently, the standing deposit facility (SDF) rate is adjusted to 5.15 percent, and the marginal standing facility (MSF) rate is adjusted to 5.65 percent, both effective immediately.
All other terms and conditions of the existing LAF Scheme remain unchanged.
**Contact:**
G. Seshsayee
Chief General Manager
Financial Markets Operations Department, Central Office, First Floor, Main Building, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001
Tel: 022-22610642
Fax: 022-22630981
Email: cgmfmod@rbi.org.in
Key Entities Referenced
Liquidity Adjustment Facility: A monetary policy tool used by the Reserve Bank of India (RBI) to manage liquidity in the banking system.
LAF: Acronym for Liquidity Adjustment Facility
Monetary Policy Statement: A statement released by the Reserve Bank of India (RBI) outlining its monetary policy decisions and outlook.
Monetary Policy Committee: A committee within the Reserve Bank of India (RBI) responsible for setting monetary policy.
MPC: Acronym for Monetary Policy Committee
Repo rate: The rate at which the Reserve Bank of India (RBI) lends money to commercial banks against the collateral of government securities.
Standing Deposit Facility: A tool used by the Reserve Bank of India (RBI) to absorb excess liquidity from the banking system.
SDF: Acronym for Standing Deposit Facility
Marginal Standing Facility: A facility under which scheduled commercial banks can borrow overnight funds from the Reserve Bank of India (RBI) at a rate higher than the repo rate.
MSF: Acronym for Marginal Standing Facility
Mumbai, Maharashtra: City in India where Financial Markets Operations Department, Central Office is located
G. Seshsayee: Chief General Manager at Financial Markets Operations Department, Reserve Bank of India.
RBI/2022-23/101
FMOD.MAOG.No.146/01.01.001/2022-23 August 05, 2022
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility- Change in rates
As announced in the Monetary Policy Statement dated August 05, 2022, it has been decided
by the Monetary Policy Committee (MPC) to increase the policy Repo rate under the Liquidity
Adjustment Facility (LAF) by 50 basis points from 4.90 per cent to 5.40 per cent with
immediate effect.
2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF)
rate stand adjusted to 5.15 per cent and 5.65 per cent respectively, with immediate effect.
3. All other terms and conditions of the extant LAF Scheme will remain unchanged.
Yours sincerely,
(G. Seshsayee)
Chief General Manager
िव�ीय बाजार प�रचालन िवभाग ,क��ीय कायार्लय ,पहली मंिजल, मुख्य भवन, शहीद भगत �संह मागर्,फोटर्, मुंबई - 400 001
फोन : 022-22610642, फैक्स: 022-22630981 ,ईमेल: cgmfmod@rbi.org.in
Financial Markets Operations Department, Central Office, First Floor, Main Building, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001
Tel: (022)- 22610642, Fax: 022-22630981, E-mail: cgmfmod@rbi.org.in
�हदं ी आसान ह ै,इसका �योग बढ़ाइए