Home › Circulars › RBI/2022-23/121

Repo Rate Hiked to 5.90%: SLF for Primary Dealers Revised

Current · Source: Reserve Bank of India · RBI/2022-23/121 · issued 30 Sep 2022 · ~1 min read
Quick answerRBI hiked the policy repo rate by 50 bps to 5.90% effective immediately. The Standing Liquidity Facility for Primary Dealers is now available at the revised repo rate of 5.90%.
The rule, in the simplest words
How it plays out — a real example

Ava, a treasury officer in Indore, needs to update her internal systems to reflect the revised SLF rate of 5.90% for Primary Dealers, ensuring that her bank's treasury and dealing teams handling PD operations are aware of the change. This will help her bank manage its liquidity effectively and make informed decisions about lending and deposit rates.

What changed

The Monetary Policy Committee increased the policy repo rate under the Liquidity Adjustment Facility by 50 basis points from 5.40% to 5.90%. Consequently, the Standing Liquidity Facility provided to Primary Dealers is now priced at the new repo rate of 5.90% with immediate effect.

What it means for you

Primary Dealers will face higher borrowing costs for collateralised liquidity support from RBI, directly impacting their funding costs. This rate hike signals tighter monetary conditions, which may lead to higher short-term rates across the banking system and influence lending and deposit rates.

What you must do

Who it affects

Primary Dealers, Treasury departments of banks, Liquidity management teams, ALCO (Asset Liability Committee)

❓ Common questions

What is the new repo rate effective from September 30, 2022?

The repo rate has been increased by 50 basis points to 5.90% with immediate effect.

How does this affect the Standing Liquidity Facility for Primary Dealers?

The SLF for Primary Dealers is now available at the revised repo rate of 5.90%, meaning higher cost for collateralised liquidity support from RBI.

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/121 REF.No.MPD.BC.395/07.01.279/2022-23 September 30, 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 5.40 per cent to 5.90 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 5.90 per cent with immediate effect. Yours faithfully, (Muneesh Kapur) Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/121 · issued 30 Sep 2022. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
🛠 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 →
Who does what — compliance checklist
⚙️ Operations
  • Communicate the rate change to treasury and dealing teams handling PD operations.
💻 IT / Systems
  • Update internal systems to reflect the revised SLF rate of 5.90% for Primary Dealers.
📜 Compliance
  • Review liquidity management strategies in light of the 50 bps repo rate hike.
  • Assess impact on your bank's cost of funds and lending rate decisions.
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, Liquidity management teams, ALCO (Asset Liability Committee)), your first concrete step on “Repo Rate Hiked to 5.90%: SLF for Primary Dealers Revised” is: “Update internal systems to reflect the revised SLF rate of 5.90% for Primary Dealers.” (RBI issued this 30 Sep 2022).

  1. Circular: RBI/2022-23/121 -- Repo Rate Hiked to 5.90%: SLF for Primary Dealers Revised
  2. Issued: 30 Sep 2022
  3. Action required: Update internal systems to reflect the revised SLF rate of 5.90% for Primary Dealers.
  4. Action required: Communicate the rate change to treasury and dealing teams handling PD operations.
  5. Action required: Review liquidity management strategies in light of the 50 bps repo rate hike.
  6. Action required: Assess impact on your bank's cost of funds and lending rate decisions.
  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=12392&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 ↗
—