**Policy Summary: RBI202223147 - Liquidity Adjustment Facility Rate Adjustment**
This policy, issued by the Reserve Bank of India (RBI) on December 7, 2022, announces an increase in the policy repo rate under the Liquidity Adjustment Facility (LAF) by 35 basis points. The policy repo rate is revised from 5.90 percent to 6.25 percent, effective immediately. Consequently, the standing deposit facility (SDF) rate is adjusted to 6.00 percent, and the marginal standing facility (MSF) rate is adjusted to 6.50 percent, also effective immediately. All other terms and conditions of the existing LAF Scheme remain unchanged.
For further information, contact G. Seshsayee, Chief General Manager, Financial Markets Operations Department, Central Office, First Floor, Main Building, Shahid Bhagat Singh Marg, Fort, Mumbai 400 001. Telephone: 022-22610642, Fax: 022-22630981, Email: cgmfmod@rbi.org.in.
Key Entities Referenced
Liquidity Adjustment Facility: A monetary policy instrument used by the Reserve Bank of India (RBI) that allows banks to borrow money through repurchase agreements or to deposit money with the RBI.
Monetary Policy Statement: A document released by the Monetary Policy Committee (MPC) outlining the current monetary policy stance and future guidance.
Monetary Policy Committee: The committee responsible for setting the policy repo rate in India.
policy repo rate: The interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks.
standing deposit facility: A facility allowing banks to deposit surplus liquidity with the Reserve Bank of India (RBI) at a specified interest rate.
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 against their government securities.
G. Seshsayee: Chief General Manager, Financial Markets Operations Department, Reserve Bank of India.
Mumbai, Maharashtra: Location of the Central Office, Financial Markets Operations Department, Reserve Bank of India.
RBI/2022-23/147
FMOD.MAOG.No.148/01.01.001/2022-23 December 07, 2022
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility- Change in rates
As announced in the Monetary Policy Statement dated December 07, 2022, it has been
decided by the Monetary Policy Committee (MPC) to increase the policy repo rate under the
Liquidity Adjustment Facility (LAF) by 35 basis points from 5.90 per cent to 6.25 per cent with
immediate effect.
2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF)
rate stand adjusted to 6.00 per cent and 6.50 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