Liquidity Adjustment Facility – Repo and Reverse Repo Rates

Liquidity Adjustment Facility – Repo and Reverse Repo Rates

It has been decided to reduce the Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.75 per cent to 6.50 per cent.

Further, the Reverse Repo rate under the LAF has been increased by 25 basis points from 5.75 percent to 6.00 percent.

These changes will come into force with immediate effect. All other terms and conditions of the current LAF Scheme will remain unchanged.

Marginal Standing Facility (MSF)

Marginal Standing Facility

(MSF) rate refers to the rate at which the scheduled banks can borrow funds overnight from RBI against government securities. MSF is a very short term borrowing scheme for scheduled commercial banks.

Marginal Standing Facility As announced by RBI, it has been decided to reduce the Marginal Standing Facility (MSF) rate by 75 basis points from 7.75 per cent to 7.00 percent with immediate effect. All other terms and conditions of the current MSF scheme will remain unchanged.