Banking News

RBI nicks rate by 50 BPS, REPO rate under LAF reduced to 6.75%


RBI nicks rate by 50 BPS, The policy repo rate under LAF reduced to 6.75 per cent

In the fourth bi-monthly monitory policy statement for 2015-16 (29.09.2015), RBI said that on the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points from 7.25 per cent to 6.75 per cent. Consequently, the reverse repo rate under the LAF will be reduced to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75 per cent.

The new rates are as under

CRR……………………………………….   4.00%
SLR………………………………………..21.50%
Repo Rate…………………………….        6.75%
Reverse Repo Rate……………….            5.75%
Marginal Standing Facility Rate………… .7.75%
Bank Rate………………………………….. 7.75%

Call Rates……………………………………6.40 to8.40%

RBI continues to provide liquidity under overnight repos of 0.25 percent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 percent of bank-wise NDTL of the banking system through auctions and continue with daily variable rate term repo and reverse repo auctions to smooth liquidity.

 

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