RBI/2008-2009/257
FMD.MOAG. No.28/01.01.01/2008-09
November 3, 2008
All
Scheduled Commercial Banks (excluding RRBs)
and Primary Dealers
Dear
Sir,
LIQUIDITY ADJUSTMENT FACILITY – REPO AND
REVERSE REPO RATES
As already announced on
November 1, 2008, the Reserve Bank has decided to reduce the fixed repo rate under
the Liquidity Adjustment Facility (LAF) by 50 basis points from 8.0 per cent to
7.5 per cent with effect from November 3, 2008, in view of the ebbing of upside
inflation risks as also to address concerns relating to the moderation in the
growth momentum.
2. The reverse repo rate under LAF remains
unchanged at 6.00 per cent.
3. All other terms and conditions
of the current LAF Scheme remain unchanged.
Yours faithfully
(Chandan
Sinha)
Chief General Manager