Repo Rate Hiked to 6.50%: SLF for Primary Dealers Revised
Current · Source: Reserve Bank of India · RBI/2022-23/173 · issued 08 Feb 2023 · ~1 min read
Quick answerRBI raised the policy repo rate by 25 bps to 6.50% effective February 8, 2023. Consequently, the Standing Liquidity Facility for Primary Dealers is now priced at the new repo rate. This aligns with the MPC's monetary tightening stance.
The rule, in the simplest words
The RBI increased the repo rate by 25 basis points to 6.50%.
Primary Dealers will face higher borrowing costs for collateralised liquidity from RBI.
How it plays out — a real example
As a treasury officer in Indore, I would need to consider the impact of this rate hike on our funding costs when lending to customers. I would review our liquidity management strategies to ensure we can continue to provide loans at competitive rates while managing our own costs.
What changed
The Monetary Policy Committee increased the repo rate under the Liquidity Adjustment Facility by 25 basis points from 6.25% to 6.50%. The Standing Liquidity Facility for Primary Dealers, a collateralised liquidity support from RBI, is now available at the revised repo rate of 6.50% with immediate effect.
What it means for you
Primary Dealers will face higher borrowing costs for collateralised liquidity from RBI, directly impacting their funding costs. This rate hike signals continued monetary tightening, which may lead to higher lending rates across the banking system and tighter liquidity conditions for market participants.
What you must do
Update internal systems to reflect the new SLF rate of 6.50% for Primary Dealers.
Review liquidity management strategies to account for higher funding costs.
Communicate the rate change to treasury and dealing teams handling PD operations.
Assess impact on bond yields and market liquidity in light of the repo rate hike.
Who it affects
Primary Dealers, Treasury departments of banks, Market makers in government securities, RBI's liquidity operations team
❓ Common questions
Regulatory timeline
Stated effective dateeffective February 8, 2023
Decoded by BankPulse2026-06-18 05:05 IST
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 February 8, 2023?
The repo rate has been increased by 25 basis points to 6.50% per annum.
How does this affect the Standing Liquidity Facility for Primary Dealers?
The SLF, which is collateralised liquidity support from RBI, is now priced at the revised repo rate of 6.50%.
When did this change take effect?
The change is effective immediately from February 8, 2023, as announced in the Monetary Policy Statement.
📜 Read the original circular — full text as issued by RBI
RBI/2022-23/173
REF.No.MPD.BC.397/07.01.279/2022-23
February 08, 2023
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 25 basis points from 6.25 per cent to 6.50 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 6.50 per cent with immediate effect.
Yours faithfully,
(Muneesh Kapur)
Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/173 · issued 08 Feb 2023. The plain-English explanation above is BankPulse’s own independent summary.
Communicate the rate change to treasury and dealing teams handling PD operations.
💻 IT / Systems
Update internal systems to reflect the new SLF rate of 6.50% for Primary Dealers.
📜 Compliance
Review liquidity management strategies to account for higher funding costs.
Assess impact on bond yields and market liquidity in light of the repo rate 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, Market makers in government securities, RBI's liquidity operations team), your first concrete step on “Repo Rate Hiked to 6.50%: SLF for Primary Dealers Revised” is: “Update internal systems to reflect the new SLF rate of 6.50% for Primary Dealers.” (RBI issued this 08 Feb 2023).
Circular: RBI/2022-23/173 -- Repo Rate Hiked to 6.50%: SLF for Primary Dealers Revised
Issued: 08 Feb 2023
Action required: Update internal systems to reflect the new SLF rate of 6.50% for Primary Dealers.
Action required: Review liquidity management strategies to account for higher funding costs.
Action required: Communicate the rate change to treasury and dealing teams handling PD operations.
Action required: Assess impact on bond yields and market liquidity in light of the repo rate 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=12449&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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