**Summary:**
RBI2018-2019-198 FMOD.MAOG. No.13301.18.001-2018-19 dated June 6, 2019, addresses all Marginal Standing Facility (MSF) participants. This communication informs of a decision made by the Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points, from 6.00 percent to 5.75 percent, effective immediately. Consequently, the Marginal Standing Facility (MSF) rate is adjusted to 6.00 percent, effective immediately. All other terms and conditions of the existing MSF scheme remain unchanged. The communication originates from 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. Contact information includes Tel: 22610642, Fax No: 22630981, and 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 that is responsible for setting the policy interest rates to achieve the inflation target.
Repo rate: The rate at which the Reserve Bank of India lends money to commercial banks against the security of government securities.
Liquidity Adjustment Facility (LAF): A tool used by the Reserve Bank of India to manage liquidity in the banking system through repo and reverse repo operations.
Reserve Bank of India (RBI): India's central bank, responsible for the monetary policy and regulation of the banking 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/2018-2019/198
FMOD.MAOG. No.133/01.18.001/2018-19
June 6, 2019
All Marginal Standing Facility (MSF) participants
Madam/Sir,
Marginal Standing Facility
As announced in the Second 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 6.00 per cent to
5.75 per cent with immediate effect.
2. Consequently, the Marginal Standing Facility (MSF) rate stands adjusted to 6.00 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