**Summary:**
RBI20182019-115/FMOD.MAOG. No.129/01.18.001/2018-19, dated February 7, 2019, addresses all Marginal Standing Facility (MSF) participants. This circular announces the Monetary Policy Committee's (MPC) decision to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points, from 6.50 percent to 6.25 percent, effective immediately. Consequently, the Marginal Standing Facility (MSF) rate is adjusted to 6.50 percent with immediate effect. All other terms and conditions of the existing MSF scheme remain unchanged. The circular is issued by Radha Shyam Ratho, Chief General Manager, Financial Markets Operations Department, Central Office, Reserve Bank of India (RBI). Contact information includes: Main Building, Shahid Bhagat Singh Road, Fort, Mumbai-400 001, India; Tel: 22610642; Fax No: 22630981; Email: cgmfmod@rbi.org.in.
Key Entities Referenced
Marginal Standing Facility: A facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank of India (RBI).
Monetary Policy Committee: A committee of the Reserve Bank of India that is responsible for setting the policy interest rates.
Repo rate: The rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.
Liquidity Adjustment Facility: A tool used by the Reserve Bank of India (RBI) to manage liquidity in the banking system.
Reserve Bank of India: India's central bank, responsible for the monetary policy and regulation of the banking system.
Mumbai, Maharashtra: The city in Maharashtra State 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.
Financial Markets Operations Department: A department of the Reserve Bank of India.
RBI/2018-2019/115
FMOD.MAOG. No.129 /01.18.001/2018-19
February 7, 2019
All Marginal Standing Facility (MSF) participants
Madam/Sir,
Marginal Standing Facility
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 6.50 per cent to 6.25
per cent with immediate effect.
2. Consequently, the Marginal Standing Facility (MSF) rate stands adjusted to 6.50 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