Liquidity Adjustment Facility – Repo and Reverse Repo Rates

Last updated: 27 March 2020

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The Reserve Bank of India (RBI) has announced a reduction in key interest rates under the Liquidity Adjustment Facility (LAF). The policy Repo rate has been lowered by 75 basis points to 4.40%, and the Reverse Repo rate has been adjusted to 4.00%. These changes are effective immediately and were decided by the Monetary Policy Committee (MPC) as part of the Seventh Bi-monthly Monetary Policy Statement for 2019-20. All other terms of the LAF Scheme remain the same.

RBI/2019-2020/182
FMOD.MAOG.No.140/01.01.001/2019-20

March 27, 2020

All Liquidity Adjustment Facility (LAF) participants

Madam/Sir,

As announced in the Seventh 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 75 basis points from 5.15 per cent to 4.40 per cent with immediate effect.

2. Further, consequent upon the widening of the LAF corridor, the Reverse Repo rate under the LAF stands adjusted from 4.90 per cent to 4.00 per cent with immediate effect.

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

Yours sincerely,

(Radha Shyam Ratho)
Chief General Manager

FAQ :

The policy Repo rate under the LAF has been reduced by 75 basis points from 5.15% to 4.40%, and the Reverse Repo rate has been adjusted from 4.90% to 4.00%.

These changes are effective immediately.

The Monetary Policy Committee (MPC) decided on these changes.

The new policy Repo rate under the LAF is 4.40%.

The new Reverse Repo rate under the LAF is 4.00%.

No, all other terms and conditions of the extant LAF Scheme will remain unchanged.