**Summary:**
RBI/2018-2019/160 FMOD.MAOG.No.13001/01.001/2018-19, dated April 4, 2019, issued to all Liquidity Adjustment Facility (LAF) participants, announces a reduction in the policy Repo rate under the LAF by 25 basis points, decreasing it from 6.25 percent to 6.00 percent, effective immediately. Consequently, the Reverse Repo rate under the LAF is adjusted to 5.75 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. Telephone: 22610642, Fax No: 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) to manage liquidity in the banking system.
Repo Rate: The rate at which the central bank lends money to commercial banks against the security of government securities.
Reverse Repo Rate: The rate at which the central bank borrows money from commercial banks.
Monetary Policy Committee (MPC): A committee of the Reserve Bank of India (RBI) responsible for setting monetary policy.
Reserve Bank of India (RBI): The central bank of India.
Mumbai, Maharashtra: The city in which the Central Office of Financial Markets Operations Department, Reserve Bank of India is located.
First Bimonthly Monetary Policy Statement, 2019-20: A monetary policy statement issued by the Reserve Bank of India (RBI).
Radha Shyam Ratho: Chief General Manager, Financial Markets Operations Department, Reserve Bank of India (RBI).
RBI/2018-2019/160
FMOD.MAOG.No.130/01.01.001/2018-19 April 4, 2019
All Liquidity Adjustment Facility (LAF) participants
Madam/Sir,
Liquidity Adjustment Facility – Repo and Reverse Repo Rates
As announced in the First 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 6.25 per cent to 6.00
per cent with immediate effect.
2. Consequently, the Reverse Repo rate under the LAF stands adjusted to 5.75 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