Liquidity adjustment facility Current Affairs, GK & News

Liquidity Adjustment Facility

December 6, 2020

Recently, the Reserve Bank of India (RBI) has decided to extend liquidity adjustment facility (LAF) to Regional Rural Banks (RRB) to make liquidity management more efficient. The LAF was introduced in RBI in 1998 based on the recommendations of Narasimham Committee on Banking Sector Reforms. It is a monetary policy tool that enables banks to ..

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RBI to buy and sell Government Securities worth Rs 10,000 crores

December 21, 2019

On December 23, 2019, the Reserve Bank of India will buy and sell government securities of Rs 10,000 crores under a special Open Market Operation. Such moves are implemented by the federal bank in order to bring down the interest rates of long-term securities. This time RBI has named its move as “Operation Twist”. There ..

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RBI cuts policy repo rate in its 3rd bi-monthly Monetary Policy Statement for FY 20

August 8, 2019

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has recently announcement its 3rd bi-monthly Monetary Policy Statement for FY 20 (2019-20). In it, RBI reduced the policy repo rate under the Liquidity Adjustment Facility (LAF) by 35 basis points (bps) from 5.75% to 5.40% with immediate effect. Consequently, the reverse repo ..

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RBI Cuts Repo Rate

August 8, 2019

The Reserve Bank of India (RBI) in its monetary policy review undertaken by the Monetary Policy Committee (MPC) has made the following decisions: RBI cuts repo rate to 5.4% from the current 5.75%. Reverse repo rate under liquidity adjustment facility stands revised to 5.15%. Marginal standing facility (MSF) rate and the bank rate reduced to 6%. ..

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RBI Monetary Policy Review

June 7, 2019

The Reserve Bank of India (RBI) has announced the second bi-monthly monetary policy statement for 2019-20. The key decisions reflected in the Monetary Policy statement are: Repo rate reduced to 5.75 per cent from the current 6per cent. Similarly, the reverse repo rate under the Liquidity Adjustment Facility (LAF) stands adjusted to 5.5% and the ..

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1st Bi-monthly Monetary Policy Statement Released

April 5, 2019

On the basis of an assessment of the current macroeconomic situation, the Monetary Policy Committee at its meeting decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.0% from 6.25% with immediate effect. The reverse repo rate under the LAF stands adjusted to 5.75%, and the ..

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RBI cuts its repo rate under Liquidity Adjustment Facility (LAF) by 25 basis points to 6.0%

April 4, 2019

The Reserve Bank of India (RBI) has cut its repo rate under Liquidity Adjustment Facility (LAF) by 25 basis points to 6.0% in its first bi-monthly policy statement of the current financial year FY20, with immediate effect. The move will cheer markets and investors and is the second consecutive rate cut by the RBI. It ..

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