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Repo Rate Hiked 25 bps to 6.50%

Current · Source: Reserve Bank of India · RBI/2022-23/175 · issued 08 Feb 2023 · ~1 min read
Quick answerRBI raised the policy repo rate by 25 bps to 6.50% effective immediately. The SDF and MSF rates are now 6.25% and 6.75% respectively. All other LAF terms remain unchanged.
The rule, in the simplest words
How it plays out — a real example

Rohit, a treasury officer in Mumbai, looks at the new repo, SDF, and MSF rates and quickly updates the bank’s loan‑pricing spreadsheet. He then chats with the ALCO team, explaining the changes so they can plan the bank’s liquidity and inform customers about possible rate adjustments.

What changed

The Monetary Policy Committee increased the repo rate under LAF by 25 basis points from 6.25% to 6.50%, effective February 8, 2023. Consequently, the SDF rate was adjusted to 6.25% and the MSF rate to 6.75%.

What it means for you

Banks will face higher cost of funds from the RBI's liquidity window, which may lead to increased lending rates for customers. The hike signals continued tightening to curb inflation, impacting loan demand and net interest margins.

What you must do

Who it affects

All LAF participants including banks and primary dealers, Treasury and asset-liability management teams, Retail and corporate borrowers with floating rate loans

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

When did this rate change take effect?

The repo rate hike to 6.50% and the adjustments to SDF (6.25%) and MSF (6.75%) took effect immediately from February 8, 2023.

Are there any changes to other LAF terms?

No, all other terms and conditions of the LAF scheme remain unchanged as per the notification.

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/175 FMOD.MAOG.No.149/01.01.001/2022-23 February 08, 2023 All Liquidity Adjustment Facility (LAF) participants Madam/Sir, Liquidity Adjustment Facility - Change in rates As announced in the  Monetary Policy Statement dated February 08, 2023 , 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. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 6.25 per cent and 6.75 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/2022-23/175 · issued 08 Feb 2023. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💰 Credit
  • Assess impact on loan book repricing and customer affordability.
💻 IT / Systems
  • Update internal systems and reporting for the revised SDF and MSF rates.
📜 Compliance
  • Review and adjust your bank's lending and deposit rates in line with the new repo rate.
  • Communicate the rate change to treasury and ALCO teams for liquidity planning.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All LAF participants including banks and primary dealers, Treasury and asset-liability management teams, Retail and corporate borrowers with floating rate loans), your first concrete step on “Repo Rate Hiked 25 bps to 6.50%” is: “Review and adjust your bank's lending and deposit rates in line with the new repo rate.” (RBI issued this 08 Feb 2023).

  1. Circular: RBI/2022-23/175 -- Repo Rate Hiked 25 bps to 6.50%
  2. Issued: 08 Feb 2023
  3. Action required: Review and adjust your bank's lending and deposit rates in line with the new repo rate.
  4. Action required: Communicate the rate change to treasury and ALCO teams for liquidity planning.
  5. Action required: Assess impact on loan book repricing and customer affordability.
  6. Action required: Update internal systems and reporting for the revised SDF and MSF rates.
  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=12451&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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