**Policy Summary: Liquidity Adjustment Facility (LAF) Repo and Reverse Repo Rates**
This policy statement, RBI20182019114 FMOD.MAOG.No.12801.01.001201819, issued by the Reserve Bank of India (RBI) on February 7, 2019, announces a reduction in the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points. The Monetary Policy Committee (MPC) decided to reduce the rate from 6.5 percent to 6.25 percent, effective immediately. Consequently, the Reverse Repo rate under the LAF is adjusted to 6.0 percent, also effective immediately. All other terms and conditions of the existing LAF Scheme remain unchanged. For further information, contact Radha Shyam Ratho, Chief General Manager, Financial Markets Operations Department, Central Office, 1st Floor, Main Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400 001, India. Tel: 22610642, Fax No: 22630981, Email: cgmfmod@rbi.org.in.
Key Entities Referenced
Liquidity Adjustment Facility: A monetary policy instrument used by the Reserve Bank of India (RBI) to manage liquidity in the banking system.
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: 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.
Financial Markets Operations Department: A department of the Reserve Bank of India (RBI).
Mumbai, Maharashtra: Location of the Central Office, 1st Floor, Main Building, Shahid Bhagat Singh Road, Fort, of the Reserve Bank of India's Financial Markets Operations Department.
LAF Scheme: Liquidity Adjustment Facility Scheme. Terms and conditions of the extant LAF Scheme will remain unchanged.
RBI/2018-2019/114
FMOD.MAOG.No.128/01.01.001/2018-19
February 7, 2019
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility – Repo and Reverse Repo Rates
As announced in the Sixth Bi-monthly Monetary Policy Statement, 2018-19, 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 6.5 per cent to 6.25
per cent with immediate effect.
2. Consequently, the Reverse Repo rate under the LAF stands adjusted to 6.0 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