RBI Grade BNABARD ESISEBI
Policy Action
- Repo Rate: Reduced by 25 basis points → 5.25%
- Standing Deposit Facility (SDF) Rate: 5.00%
- Marginal Standing Facility (MSF) Rate: 5.50%
- Bank Rate: 5.50%
- Fixed Reverse Repo Rate: 3.35%
Purpose of Policy Action:
- Boost liquidity in the banking system
- Support economic growth amid benign inflation
- Maintain flexibility for future rate adjustments
Explanation of Key RBI Rates
| Rate | Current Level | Function |
|---|---|---|
| Repo Rate | 5.25% | Rate at which RBI lends to commercial banks; cuts stimulate growth |
| SDF Rate | 5.00% | Rate at which banks deposit surplus funds with RBI without collateral |
| MSF Rate | 5.50% | Overnight borrowing rate for banks in urgent need; last-resort facility |
| Bank Rate | 5.50% | Long-term lending rate of RBI; benchmark for other interest rates |
| Fixed Reverse Repo Rate | 3.35% | Rate at which RBI borrows from banks; helps manage liquidity |