RBI/2006-2007/301
FMD.MOAG.
No.14/01.01.01/2006-07 March 30, 2007 All
Scheduled Commercial Banks (excluding RRBs)
and Primary
Dealers Dear
Sir, LIQUIDITY
ADJUSTMENT FACILITY – REPO AND REVERSE REPO RATES In
the light of the current macroeconomic, monetary and anticipated liquidity conditions,
and with a view to containing inflation expectations, the Reserve Bank of India
has announced monetary measures today. In accordance with the measures announced,
the fixed repo rate under the Liquidity Adjustment Facility (LAF) has been increased
by 25 basis points to 7.75 per cent from 7.50 per cent, with effect from March
31, 2007. 2.
The reverse repo rate under LAF remains unchanged at 6.00 per cent. 3.
The modified arrangements regarding LAF announced on March 2, 2007 vide our circular
FMD.MOAG.No.12/01.01.01/2006-07
dated March 2, 2007 will continue until further notice. All other terms and
conditions for LAF remain as notified by our earlier circulars FMD.No. 10/01.01.01./2006-07
dated January 31, 2007 and FMD.MOAG.No.13/01.01.01/2006-07
dated March 30, 2007. 4.
Please acknowledge receipt by e-mail. Yours
faithfully (Chandan Sinha)
Chief
General Manager |