RBI/2010-2011/501
FMD.MOAG. No.58/01.01.01/2010-11

May 3, 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 Annual Monetary Policy 2011-12, it has been decided to increase the repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points from 6.75 per cent to 7.25 per cent with immediate effect.

2. Further, as announced in the Policy, the reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, will stand at 6.25 per cent with immediate effect.

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

4. Please acknowledge receipt.

Yours sincerely

(G. Mahalingam)
Chief General Manager