Repo Rate Hiked 50 bps: SLF for Primary Dealers Revised
Current · Source: Reserve Bank of India · RBI/2022-23/102 · issued 05 Aug 2022 · ~1 min read
Quick answerRBI hiked the repo rate by 50 bps to 5.40% effective August 5, 2022. The Standing Liquidity Facility for Primary Dealers is now priced at the new repo rate. This tightens liquidity support costs for PDs immediately.
The rule, in the simplest words
The RBI (India's central bank) raised its main lending rate (repo rate) by 50 basis points (0.50%) from 4.90% to 5.40% starting August 5, 2022.
The special cheap loan program for Primary Dealers (companies that buy and sell government bonds) called SLF (Standing Liquidity Facility) now costs the new higher rate of 5.40%.
This makes it more expensive for Primary Dealers to borrow money from the RBI, so they will have to pay more interest.
Banks and Primary Dealers must update their computer systems and plans to use the new higher rate for borrowing.
How it plays out — a real example
A treasury officer in Indore, Priya, checks her bank's daily funding report and sees the SLF rate for Primary Dealers has jumped to 5.40%. She quickly tells her treasury team to update their borrowing cost calculations, so they don't accidentally use the old 4.90% rate and lose money on their bond trades.
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% with immediate effect. Consequently, the Standing Liquidity Facility provided to Primary Dealers is now available at the revised repo rate of 5.40%.
What it means for you
Primary Dealers will face higher borrowing costs for collateralised liquidity support from RBI, directly impacting their funding expenses. This aligns with the broader monetary tightening stance to contain inflationary pressures. Banks and PDs must reassess their liquidity management and pricing strategies in response to the rate hike.
What you must do
Update internal systems to reflect the new SLF rate of 5.40% for Primary Dealers.
Review liquidity contingency plans and borrowing costs for PD operations.
Communicate the rate change to treasury and dealing teams for immediate implementation.
Assess impact on bond yields and market liquidity given the 50 bps hike.
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the new repo rate effective from August 5, 2022?
The repo rate has been increased by 50 basis points to 5.40% per annum with immediate effect.
How does this affect the Standing Liquidity Facility for Primary Dealers?
The SLF for Primary Dealers is now priced at the revised repo rate of 5.40%, making collateralised liquidity support more expensive.
📜 Read the original circular — full text as issued by RBI
RBI/2022-23/102
REF.No.MPD.BC.394/07.01.279/2022-23
August 05, 2022
All Primary Dealers,
Standing Liquidity Facility for Primary Dealers
As announced in the Monetary Policy Statement 2022-23 today, 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. Accordingly, the Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate of 5.40 per cent with immediate effect.
Yours faithfully,
(Muneesh Kapur)
Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/102 · issued 05 Aug 2022. The plain-English explanation above is BankPulse’s own independent summary.
Review liquidity contingency plans and borrowing costs for PD operations.
💻 IT / Systems
Update internal systems to reflect the new SLF rate of 5.40% for Primary Dealers.
📜 Compliance
Communicate the rate change to treasury and dealing teams for immediate implementation.
Assess impact on bond yields and market liquidity given the 50 bps hike.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (Primary Dealers, Treasury departments of banks, RBI's Liquidity Adjustment Facility participants), your first concrete step on “Repo Rate Hiked 50 bps: SLF for Primary Dealers Revised” is: “Update internal systems to reflect the new SLF rate of 5.40% for Primary Dealers.” (RBI issued this 05 Aug 2022).
Action required: Update internal systems to reflect the new SLF rate of 5.40% for Primary Dealers.
Action required: Review liquidity contingency plans and borrowing costs for PD operations.
Action required: Communicate the rate change to treasury and dealing teams for immediate implementation.
Action required: Assess impact on bond yields and market liquidity given the 50 bps hike.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.
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=12370&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
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 ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.