Home › Circulars › RBI/2013-2014/470

Repo Rate Hiked 25 bps to 8.00%

Current · Source: Reserve Bank of India · RBI/2013-2014/470 · issued 28 Jan 2014 · ~1 min read
Quick answerRBI raised the repo rate by 25 basis points to 8.00% with immediate effect. The reverse repo rate automatically adjusted to 7.00%. All other LAF terms remain unchanged.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore, Mr. Kumar, needs to adjust the interest rates for his customers' gold loans after the RBI's repo rate hike. Mr. Kumar reviews the current interest rates for gold loans and decides to increase them by 0.25% to reflect the higher borrowing costs from RBI. He communicates the rate change to his customers and updates the product pricing accordingly to ensure that his bank remains competitive in the market.

What changed

The repo rate under the Liquidity Adjustment Facility was increased by 25 basis points from 7.75% to 8.00%, effective immediately. Consequently, the reverse repo rate automatically adjusted to 7.00%.

What it means for you

Banks will face higher borrowing costs from RBI, potentially leading to increased lending rates for customers. This tightening aims to curb inflation but may slow credit growth. Lenders must reassess their asset-liability management and pricing strategies.

What you must do

Who it affects

All scheduled commercial banks (excluding RRBs), Standalone primary dealers, Borrowers with floating-rate loans, Depositors

❓ Common questions

When did this repo rate hike take effect?

The hike was effective immediately from January 28, 2014, as announced in the Third Quarter Review of Monetary Policy 2013-14.

What is the new reverse repo rate?

The reverse repo rate automatically adjusted to 7.00% following the repo rate increase to 8.00%.

Are any other LAF terms changing?

No, all other terms and conditions of the current LAF scheme remain unchanged.

📜 Read the original circular — full text as issued by RBI
RBI/2013-2014/470 FMD.MOAG. No. 96 /01.01.001/2013-14 January 28, 2014 All Scheduled Commercial Banks (excluding RRBs) and Standalone Primary Dealers Madam / Sir, Liquidity Adjustment Facility – Repo and Reverse Repo As announced today in the Third Quarter Review of the Monetary Policy 2013-14 , it has been decided to increase the Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 7.75 per cent to 8.00 per cent with immediate effect. 2. Consequent to the change in the Repo rate, the Reverse Repo rate under the LAF will stand automatically adjusted to 7.00 per cent with immediate effect. 3. All other terms and conditions of the current LAF scheme will remain unchanged. Yours sincerely (G. Mahalingam) Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-2014/470 · issued 28 Jan 2014. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMSenior Management / BoardProduct Manager (Digital & Lending)Risk ManagementCompliance TeamEconomist / Research
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Financial Markets Regulation
RBI Announces ₹1.25 Lakh Crore 2-Day VRR Auction on July 1Overnight VRR Auction Result: June 30, 2026RBI conducts ₹75,000 crore overnight VRR auction on June 30, 2026VRR Auction June 29, 2026: ₹75,021 Cr Allotted at 5.26%Overnight VRR Auction Result: July 29, 2026
Browse all departments →
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks (excluding RRBs), Standalone primary dealers, Borrowers with floating-rate loans, Depositors), your first concrete step on “Repo Rate Hiked 25 bps to 8.00%” is: “Review and adjust lending and deposit rates in line with the new repo rate.” (RBI issued this 28 Jan 2014).

  1. Circular: RBI/2013-2014/470 -- Repo Rate Hiked 25 bps to 8.00%
  2. Issued: 28 Jan 2014
  3. Action required: Review and adjust lending and deposit rates in line with the new repo rate.
  4. Action required: Reassess liquidity management and ALM positions to account for higher funding costs.
  5. Action required: Communicate rate changes to customers and update product pricing accordingly.
  6. Action required: Monitor inflation trends and RBI's future policy signals for further adjustments.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8718&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—