RBI/2007-2008/379
FMD.MOAG.
No.19/01.01.01/2007-08
June 24, 2008
All Scheduled Commercial
Banks (excluding RRBs)
and Primary Dealers
Dear Sir,
Liquidity
Adjustment Facility – Repo and Reverse Repo Rates
Consistent
with the stance of monetary policy in 2008-09 and on the basis of incoming information
on domestic and global macroeconomic and financial developments, the Reserve Bank
of India has decided to increase the fixed repo rate under the Liquidity Adjustment
Facility (LAF) by 50 basis points to 8.50 per cent from 8.00 per cent with effect
from June 25, 2008.
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.
4. Please acknowledge receipt by e-mail.
Yours
faithfully
(Chandan Sinha)
Chief General Manager