**Summary:**
This document, RBI2019202034 FMOD.MAOG. No.13501.18.001201920, issued by the Reserve Bank of India (RBI) on August 7, 2019, announces an adjustment to the Marginal Standing Facility (MSF) rate. Following the Third Bimonthly Monetary Policy Statement, 2019-20, the Monetary Policy Committee (MPC) has decided to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 35 basis points, from 5.75 percent to 5.40 percent, effective immediately. Consequently, the MSF rate is adjusted to 5.65 percent, also with immediate effect. All other terms and conditions of the existing MSF 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
Marginal Standing Facility (MSF): A facility allowing scheduled commercial banks to borrow additional amounts of overnight money from the Reserve Bank of India (RBI).
Monetary Policy Committee (MPC): A committee of the Reserve Bank of India (RBI) that is responsible for setting India's monetary policy.
Repo rate: The rate at which the Reserve Bank of India (RBI) lends money to commercial banks against the security of government securities.
Liquidity Adjustment Facility (LAF): A tool used by the Reserve Bank of India (RBI) to manage liquidity in the money market.
Reserve Bank of India (RBI): India's central bank, responsible for regulating the country's monetary and financial system.
Mumbai, Maharashtra: The city in Maharashtra where the Central Office of the Financial Markets Operations Department of RBI is located.
Radha Shyam Ratho: Chief General Manager, Financial Markets Operations Department, Reserve Bank of India (RBI).
RBI/2019-2020/34
FMOD.MAOG. No.135/01.18.001/2019-20
August 7, 2019
All Marginal Standing Facility (MSF) participants
Madam/Sir,
Marginal Standing Facility
As announced in the Third 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 35 basis points from 5.75 per cent to 5.40
per cent with immediate effect.
2. Consequently, the Marginal Standing Facility (MSF) rate stands adjusted to 5.65 per
cent with immediate effect.
3. All other terms and conditions of the extant MSF 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