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RBI raises Repo and Bank Rates by 25 Base points

Last updated: 02 August 2018


RBI/2018-2019/31
FMOD.MAOG. No.126 /01.01.001/2018-19

August 1, 2018

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 Third Bi-monthly Monetary Policy Statement, 2018-19 today, it has been decided by the Monetary Policy Committee (MPC) to increase the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.25 per cent to 6.50 per cent with immediate effect.

2. Consequent to the change in the Repo rate, the Reverse Repo rate under the LAF stands adjusted to 6.25 per cent with immediate effect.

Also, As announced in the Third Bi-Monthly Monetary Policy Statement 2018-19 dated August 1, 2018, the Bank Rate stands adjusted by 25 basis points from 6.50 per cent to 6.75 per cent with immediate effect.

3. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in the Annex.

Yours sincerely

(Radha Shyam Ratho)
Chief General Manager

Source: RBI Notification

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