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Repo Rate Hiked 35 bps to 6.25%: SDF & MSF Adjusted

Current · Source: Reserve Bank of India · RBI/2022-23/147 · issued 07 Dec 2022 · ~1 min read
Quick answerRBI hiked the repo rate by 35 bps to 6.25% effective immediately. SDF and MSF rates are now 6.00% and 6.50% respectively. All other LAF terms remain unchanged.
The rule, in the simplest words
How it plays out — a real example

A treasury officer at a scheduled commercial bank sees the new repo rate of 6.25% in the RBI circular, updates the bank's loan‑pricing and deposit‑rate tables, and then shares the changes with the ALCO team so everyone is ready for the higher borrowing cost.

What changed

The Monetary Policy Committee raised the policy repo rate under the Liquidity Adjustment Facility by 35 basis points, from 5.90% to 6.25%, effective December 7, 2022. Consequently, the standing deposit facility rate was adjusted to 6.00% and the marginal standing facility rate to 6.50%, both with immediate effect. All other terms and conditions of the LAF scheme remain unchanged.

What it means for you

Banks will face higher borrowing costs from the RBI, which will likely be passed on to customers through increased lending rates. The SDF and MSF rate adjustments ensure the corridor remains aligned, impacting overnight liquidity management. Lenders should prepare for tighter liquidity conditions and potential margin compression as deposit rates may also rise.

What you must do

Who it affects

All LAF participants including scheduled commercial banks, Treasury and ALCO teams, Retail and corporate borrowers, Depositors

❓ Common questions

Regulatory timeline

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 December 7, 2022?

The repo rate has been increased by 35 basis points to 6.25% per annum with immediate effect.

How have the SDF and MSF rates changed?

The standing deposit facility rate is now 6.00% and the marginal standing facility rate is 6.50%, both effective immediately.

Are there any other changes to the LAF scheme?

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

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/147 FMOD.MAOG.No.148/01.01.001/2022-23 December 07, 2022 All Liquidity Adjustment Facility (LAF) participants Madam/Sir, Liquidity Adjustment Facility- Change in rates As announced in the Monetary Policy Statement dated December 07, 2022 , it has been decided by the Monetary Policy Committee (MPC) to increase the policy repo rate under the Liquidity Adjustment Facility (LAF) by 35 basis points from 5.90 per cent to 6.25 per cent with immediate effect. 2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 6.00 per cent and 6.50 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/2022-23/147 · issued 07 Dec 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All LAF participants including scheduled commercial banks, Treasury and ALCO teams, Retail and corporate borrowers, Depositors), your first concrete step on “Repo Rate Hiked 35 bps to 6.25%: SDF & MSF Adjusted” is: “Review and update your bank's lending and deposit rate structures to reflect the new repo rate of 6.25%.” (RBI issued this 07 Dec 2022).

  1. Circular: RBI/2022-23/147 -- Repo Rate Hiked 35 bps to 6.25%: SDF & MSF Adjusted
  2. Issued: 07 Dec 2022
  3. Action required: Review and update your bank's lending and deposit rate structures to reflect the new repo rate of 6.25%.
  4. Action required: Communicate the rate changes to treasury and ALCO teams for immediate liquidity planning.
  5. Action required: Assess the impact on your bank's net interest margin and adjust asset-liability management strategies accordingly.
  6. Action required: Prepare for potential customer queries on loan EMIs and deposit rates following the hike.
  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=12419&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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