**Policy Summary:**
This document, reference number RBI20192020183 FMOD.MAOG.No.13901.18.001201920, dated March 27, 2020, informs all Marginal Standing Facility (MSF) participants of a policy change. As announced in the Seventh 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 75 basis points, from 5.15 percent to 4.40 percent, effective immediately. Consequently, the Marginal Standing Facility (MSF) rate is adjusted from 5.40 percent to 4.65 percent, also with immediate effect. The communication is signed by Radha Shyam Ratho, Chief General Manager.
Key Entities Referenced
Marginal Standing Facility (MSF): A facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank of India (RBI).
Monetary Policy Committee (MPC): A committee of the Reserve Bank of India that is responsible for fixing the benchmark interest rate in India.
Liquidity Adjustment Facility (LAF): A tool 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.
Reserve Bank of India (RBI): India's central bank, responsible for regulating the banking system and monetary policy.
Radha Shyam Ratho: Chief General Manager at Reserve Bank of India (RBI), signatory of the notification.
Seventh Bimonthly Monetary Policy Statement, 2019-20: A statement released by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) outlining the monetary policy decisions for the period.
RBI/2019-2020/183
FMOD.MAOG.No.139/01.18.001/2019-20 March 27, 2020
All Marginal Standing Facility (MSF) participants
Madam/Sir,
Marginal Standing Facility
As announced in the Seventh 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 75 basis points from 5.15 per cent to 4.40 per
cent with immediate effect.
2. Consequently, the Marginal Standing Facility (MSF) rate stands adjusted from 5.40 per cent
to 4.65 per cent with immediate effect.
Yours sincerely
(Radha Shyam Ratho)
Chief General Manager