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There will henceforth be only one independently varying policy rate and that will be Repo
Rate.
ii.
The Reverse Repo Rate will continue to be operative but it will be pegged at a fixed 100
basis points below the repo rate. It will no longer be an independent rate.A new Marginal
Standing Facility (MSF) was instituted from which Scheduled Commercial Banks (SCBs)
can borrow overnight up to one percent of their respective NDTL. The rate of interest on
amount accessed from this facility will be 100 basis points above the repo rate.
iii.
As per above scheme, the revised corridor will have a fixed width of 200 basis points. The
repo rate will be in the middle. The reverse repo rate will be 100 basis points below Repo
rate and the MSF rate 100 basis points above it.
iv.
v.
In view of RBI raising MSF rate to 10.25% w.e.f. 17. 7.2013, preset MSF rate is 10.25%
and as such present corridor is 4%.