**Summary:**
RBI/2018-2019/197 FMOD.MAOG.No.13201/01.001/2018-19, dated June 6, 2019, announces a reduction in the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points, decreasing it from 6.00 percent to 5.75 percent, effective immediately. Consequently, the Reverse Repo rate under the LAF is adjusted to 5.50 percent, also effective immediately. All other terms and conditions of the existing LAF Scheme remain unchanged. The decision was made by the Monetary Policy Committee (MPC) as announced in the Second Bi-monthly Monetary Policy Statement, 2019-20. For further information, contact Radha Shyam Ratho, Chief General Manager, Financial Markets Operations Department, Central Office, Reserve Bank of India, 1st Floor, Main Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400 001, India. Telephone: 22610642. Fax: 22630981. Email: cgmfmod@rbi.org.in.
Key Entities Referenced
Liquidity Adjustment Facility (LAF): A monetary policy instrument used by the Reserve Bank of India (RBI).
Repo rate: The rate at which the Reserve Bank of India (RBI) lends money to commercial banks against the security of government securities.
Reverse Repo rate: The rate at which the Reserve Bank of India (RBI) borrows money from commercial banks.
Monetary Policy Committee (MPC): A committee of the Reserve Bank of India (RBI) that is responsible for setting monetary policy.
Radha Shyam Ratho: Chief General Manager, Financial Markets Operations Department, Reserve Bank of India (RBI).
Mumbai, Maharashtra: Location of the Central Office, Financial Markets Operations Department, Reserve Bank of India (RBI).
Reserve Bank of India (RBI): The central bank of India.
Second Bimonthly Monetary Policy Statement, 2019-20: A statement released by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) outlining monetary policy decisions.
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
Financial Markets Operations Department, Central Office, 1st Floor, Ma in Building, Shahid Bhagat Singh Road, Fort, Mumbai-400 001, India
Tel : 22610642 Fax No:22630981 E-Mail : cgmfmod@rbi.org.in