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Repo Rate Hiked by 50 bps to 5.40%

Current · Source: Reserve Bank of India · RBI/2022-23/101 · issued 05 Aug 2022 · ~1 min read
Quick answerRBI hiked the repo rate by 50 bps to 5.40% effective August 5, 2022. SDF and MSF rates adjusted to 5.15% and 5.65% respectively. All other LAF terms unchanged.
The rule, in the simplest words
How it plays out — a real example

Priya Sharma, a loan officer in Mumbai, looks at the new repo rate of 5.40% and updates the interest rate on all floating‑rate home loans she manages, then sends a friendly email to customers explaining the change and why their loan payments might go up a little.

What changed

The Monetary Policy Committee increased the policy repo rate under the Liquidity Adjustment Facility by 50 basis points, from 4.90% to 5.40%, effective immediately. Consequently, the standing deposit facility rate rose to 5.15% and the marginal standing facility rate to 5.65%.

What it means for you

Banks will face higher cost of funds as borrowing from RBI becomes more expensive. Lending rates, especially those linked to the repo rate, will likely rise, impacting loan demand and net interest margins. The move signals RBI's continued focus on controlling inflation.

What you must do

Who it affects

All scheduled commercial banks, Primary dealers, Borrowers with floating rate loans, Treasury departments of banks

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

When did this repo rate hike take effect?

The hike was effective immediately from August 5, 2022, as announced in the Monetary Policy Statement.

What are the new SDF and MSF rates?

The standing deposit facility rate is now 5.15% and the marginal standing facility rate is 5.65%.

Are any other terms of the LAF scheme changing?

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

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/101 FMOD.MAOG.No.146/01.01.001/2022-23 August 05, 2022 All Liquidity Adjustment Facility (LAF) participants Madam/Sir, Liquidity Adjustment Facility- Change in rates As announced in the Monetary Policy Statement dated August 05, 2022 , it has been decided by the Monetary Policy Committee (MPC) to increase the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points from 4.90 per cent to 5.40 per cent with immediate effect. 2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 5.15 per cent and 5.65 per cent respectively, with immediate effect. 3. All other terms and conditions of the extant LAF Scheme will remain unchanged. Yours sincerely, (G. Seshsayee) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/101 · issued 05 Aug 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💰 Credit
  • Communicate the rate change to customers and update loan sanction letters accordingly.
📜 Compliance
  • Review and adjust your lending rates, especially repo-linked loans, to reflect the new repo rate.
  • Reassess liquidity management strategies given the higher SDF and MSF rates.
  • Monitor impact on asset quality and demand for credit in the coming months.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks, Primary dealers, Borrowers with floating rate loans, Treasury departments of banks), your first concrete step on “Repo Rate Hiked by 50 bps to 5.40%” is: “Review and adjust your lending rates, especially repo-linked loans, to reflect the new repo rate.” (RBI issued this 05 Aug 2022).

  1. Circular: RBI/2022-23/101 -- Repo Rate Hiked by 50 bps to 5.40%
  2. Issued: 05 Aug 2022
  3. Action required: Review and adjust your lending rates, especially repo-linked loans, to reflect the new repo rate.
  4. Action required: Reassess liquidity management strategies given the higher SDF and MSF rates.
  5. Action required: Communicate the rate change to customers and update loan sanction letters accordingly.
  6. Action required: Monitor impact on asset quality and demand for credit in the coming months.
  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.

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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=12369&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.
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