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Repo Rate Hiked to 6.25%; SLF for PDs Revised

Current · Source: Reserve Bank of India · RBI/2022-23/149 · issued 07 Dec 2022 · ~1 min read
Quick answerRBI hiked the policy repo rate by 35 bps to 6.25% with immediate effect. Consequently, the Standing Liquidity Facility for Primary Dealers is now priced at the new repo rate. This aligns with the MPC's December 2022 monetary policy decision.
The rule, in the simplest words
How it plays out — a real example

Arjun, the treasury officer at XYZ Bank in Mumbai, quickly checks the new 6.25% SLF rate, updates his borrowing plan, and shares the info with the trading desk, keeping the bank’s liquidity smooth and confident.

What changed

The Monetary Policy Committee increased the policy repo rate under the Liquidity Adjustment Facility by 35 basis points, from 5.90% to 6.25%, effective immediately. As a result, the Standing Liquidity Facility (collateralised liquidity support) provided to Primary Dealers is now available at the revised repo rate of 6.25%.

What it means for you

Primary Dealers will face higher borrowing costs for collateralised liquidity from the RBI, directly impacting their funding costs and margins. This rate hike signals continued monetary tightening, which may lead to higher short-term rates in the money market and influence PDs' bidding behaviour in government securities auctions.

What you must do

Who it affects

Primary Dealers, Treasury departments of banks dealing with PDs, RBI's Monetary Policy Department

❓ Common questions

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

The SLF, which is collateralised liquidity support from the RBI, will now be available at the revised repo rate of 6.25% instead of the earlier 5.90%.

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/149 REF.No.MPD.BC.396/07.01.279/2022-23 December 07, 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 35 basis points from 5.90 per cent to 6.25 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 6.25 per cent with immediate effect. Yours faithfully, (Muneesh Kapur) Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/149 · issued 07 Dec 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal systems to reflect the new repo rate of 6.25% for all SLF transactions with Primary Dealers.
📜 Compliance
  • Communicate the revised SLF rate to your treasury and dealing teams immediately.
  • Review your liquidity management and borrowing strategies in light of the higher cost of funds.
  • Monitor money market rates for potential spillover effects on other short-term instruments.
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 dealing with PDs, RBI's Monetary Policy Department), your first concrete step on “Repo Rate Hiked to 6.25%; SLF for PDs Revised” is: “Update internal systems to reflect the new repo rate of 6.25% for all SLF transactions with Primary Dealers.” (RBI issued this 07 Dec 2022).

  1. Circular: RBI/2022-23/149 -- Repo Rate Hiked to 6.25%; SLF for PDs Revised
  2. Issued: 07 Dec 2022
  3. Action required: Update internal systems to reflect the new repo rate of 6.25% for all SLF transactions with Primary Dealers.
  4. Action required: Communicate the revised SLF rate to your treasury and dealing teams immediately.
  5. Action required: Review your liquidity management and borrowing strategies in light of the higher cost of funds.
  6. Action required: Monitor money market rates for potential spillover effects on other short-term instruments.
  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=12421&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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