October 4, 2016
All Scheduled Commercial Banks (excluding RRBs)
Madam / Sir,
Marginal Standing Facility
As announced in the Fourth Bi-monthly Monetary Policy Statement today, it has been decided by the Monetary Policy Committee (MPC) to reduce the Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.50 per cent to 6.25 per cent with immediate effect.
Consequent to the change in the Repo rate, the Marginal Standing Facility (MSF) rate will stand adjusted to 6.75 per cent with immediate effect.
All other terms and conditions of the current MSF scheme will remain unchanged.
(M. Rajeshwar Rao)
Chief General Manager