**Policy Summary: Standing Liquidity Facility for Primary Dealers**
This document, issued by the Reserve Bank of India (RBI) on April 4, 2019, announces a revision to the Standing Liquidity Facility (SLF) for Primary Dealers (PDs). Following the First Bi-monthly Monetary Policy Statement for 2019-20, the Monetary Policy Committee (MPC) reduced the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points. Consequently, the interest rate for the collateralized liquidity support provided to PDs under the SLF from the Reserve Bank is revised to 6.00% from 6.25%, effective April 4, 2019.
For further information, please contact the Monetary Policy Department, Central Office, Reserve Bank of India, Central Office Building, Shahid Bhagat Singh Road, P.B. NO. 406, Mumbai 400 001. Telephone inquiries can be made at 912222601000. Facsimile transmissions can be sent to 9122 22610430/22700850/22610432/22631006. Email inquiries can be directed to helpmpd@rbi.org.in. The reference number for this communication is REF.No.MPD.BC.386/07.01.279/2018-19.
Key Entities Referenced
Reserve Bank of India: The central bank of India.
Primary Dealers: Financial institutions authorized to deal in government securities.
Standing Liquidity Facility: A facility provided by the Reserve Bank of India to Primary Dealers for collateralized liquidity support.
Monetary Policy Committee: A committee of the Reserve Bank of India responsible for setting monetary policy.
Liquidity Adjustment Facility: A tool used by the Reserve Bank of India to manage liquidity in the money market.
policy repo rate: The rate at which the Reserve Bank of India lends money to commercial banks against government securities.
Janak Raj: Principal Adviser at Reserve Bank of India
Mumbai, Maharashtra: City in India, location of the Central Office of the Monetary Policy Department of RBI.
भारतीय �रज़व र् बक�
________________________ RESERVE BANK OF INDIA ________________________
www.rbi.org.in
RBI/2018-19/163
REF.No.MPD.BC.386/07.01.279/2018-19 April 04, 2019
All Primary Dealers
Standing Liquidity Facility for Primary Dealers
In the First Bi-monthly Monetary Policy Statement 2019-20 of the Monetary
Policy Committee (MPC) of April 4 , 2019, the policy repo rate under the Liquidity
Adjustment Facility (LAF) has been reduced by 25 basis points to 6.00 per cent from
6.25 per cent with immediate effect.
2. Accordingly, the Standing Liquidity Facility provided to Primary Dealers (PDs)
(collateralised liquidity support) from the Reserve Bank would be available at the
revised repo rate of 6.00 per cent with effect from April 04, 2019.
Yours faithfully,
(Janak Raj)
Principal Adviser
______________________________________________________________________________________________________
मौ�द्रक नी�त �वभाग, क�द्र�य कायार्लय भवन, शह�द भगत �सहं माग,र् पोस्ट बॉक्स सं.406, मुंबई- 400 001 भारत
Monetary Policy Department, Central Office, Central Office Building, Shahid Bhagat Singh Road, P.B. NO. 406,
Mumbai- 400 001,
(Tel): (91-22)22601000; FAX (91-22) 22610430/22700850/22610432/22631006 E-MAIL: helpmpd@rbi.org.in
�हदं � आसान है, इसका प्रयोग बढ़ाइए