RBI/2010-11/388
FMD.MOAG. No.56/01.01.01/2010-11

January 25, 2011

All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers

Dear Sir,

Liquidity Adjustment Facility – Repo and Reverse Repo Rates

As announced today in the Third Quarter Review of Monetary Policy 2010-11, it has been decided to increase the repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.25 per cent to 6.50 per cent and the reverse repo rate by 25 basis points from 5.25 per cent to 5.50 per cent with immediate effect.

2. All other terms and conditions of the current LAF Scheme will remain unchanged.

3. Please acknowledge receipt.

Yours sincerely

(P. Krishnamurthy)
Chief General Manager