MONETARY POLICY

Monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply and availability of credit with a view to achieving the ultimate objective of economic policy.

Notifications

(16 kb)
Date : Oct 04, 2016
Liquidity Adjustment Facility – Repo and Reverse Repo Rates

RBI/2016-2017/76
FMOD.MAOG.No.114/01.01.001/2016-17

October 4, 2016

All Scheduled Commercial Banks (excluding RRBs), Scheduled Urban Co-operative Banks and Standalone Primary Dealers

Madam / Sir,

Liquidity Adjustment Facility – Repo and Reverse Repo Rates

As announced in the Fourth Bi-monthly Monetary Policy Statement today, it has been decided by the Monetary Policy Committee (MPC) to reduce the 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.

Consequent to the change in the Repo rate, the Reverse Repo rate under the LAF will stand adjusted to 5.75 per cent with immediate effect.

All other terms and conditions of the current LAF Scheme will remain unchanged.

Yours sincerely

(M. Rajeshwar Rao)
Chief General Manager

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