Reserve Bank of India has increased the repo rate by 50 basis points on 3 May 2011 with a circular No. 58 dated 2 May 2011. This increment in the repo rate will take will immediate effect. This is the part of Reserve bank of India RBI annual monetary policy to make adjustment of the liquidity in the market. Full circular is as under.
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 Manage
Tags-RBI circular,reserve bank of india circular,repo rates,reserve repo rates,increase in the repo rates
