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SLF for Primary Dealers Repo Rate Hiked to 4.40%

Current · Source: Reserve Bank of India · RBI/2022-23/44 · issued 04 May 2022 · ~1 min read
Quick answerRBI raised the repo rate by 40 bps to 4.40% effective May 4, 2022. The Standing Liquidity Facility for Primary Dealers is now available at this revised rate, increasing their cost of collateralised liquidity from the central bank.
The rule, in the simplest words
How it plays out — a real example

A treasury officer in Mumbai will now have to update their bank's systems to reflect the new 4.40% repo rate when calculating the cost of borrowing money through the Standing Liquidity Facility for their Primary Dealer clients. This change will affect how they manage their clients' liquidity and funding expenses. As a result, the treasury officer will need to communicate the revised rate to their team and assess the impact on their clients' overall financial situation.

What changed

The Monetary Policy Statement on May 4, 2022 increased the policy repo rate under the Liquidity Adjustment Facility by 40 basis points from 4.00% to 4.40%. Consequently, the Standing Liquidity Facility for Primary Dealers, which provides collateralised liquidity support, is now priced at the new repo rate of 4.40% with immediate effect.

What it means for you

Primary Dealers will face higher borrowing costs for liquidity accessed through the SLF, directly impacting their funding expenses. This rate hike signals RBI's tightening stance to manage inflation, which may lead to broader increases in short-term lending rates across the banking system.

What you must do

Who it affects

Primary Dealers, Treasury departments of banks dealing with PDs, RBI's Liquidity Adjustment Facility operations

❓ 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 SLF rate for Primary Dealers?

The SLF rate is now 4.40%, effective May 4, 2022, following the 40 bps repo rate hike.

When did this change take effect?

The revised rate applies from May 4, 2022, with immediate effect as per the Monetary Policy Statement.

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/44 REF.No.MPD.BC.S33/07.01.279/2022-23 May 4, 2022 All Primary Dealers, Standing Liquidity Facility for Primary Dealers In the Monetary Policy Statement 2022-23, dated May 4, 2022 , the policy repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 40 basis points to 4.40 per cent from 4.00 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 4.40 per cent with effect from May 4, 2022. Yours faithfully, (Muneesh Kapur) Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/44 · issued 04 May 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Communicate the revised rate to treasury and dealing teams handling PD operations.
💻 IT / Systems
  • Update internal systems to reflect the new SLF rate of 4.40% for Primary Dealers.
📜 Compliance
  • Assess the impact on liquidity management and funding costs for PDs.
  • Monitor RBI's future policy actions for further rate adjustments.
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 Liquidity Adjustment Facility operations), your first concrete step on “SLF for Primary Dealers Repo Rate Hiked to 4.40%” is: “Update internal systems to reflect the new SLF rate of 4.40% for Primary Dealers.” (RBI issued this 04 May 2022).

  1. Circular: RBI/2022-23/44 -- SLF for Primary Dealers Repo Rate Hiked to 4.40%
  2. Issued: 04 May 2022
  3. Action required: Update internal systems to reflect the new SLF rate of 4.40% for Primary Dealers.
  4. Action required: Communicate the revised rate to treasury and dealing teams handling PD operations.
  5. Action required: Assess the impact on liquidity management and funding costs for PDs.
  6. Action required: Monitor RBI's future policy actions for further rate adjustments.
  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=12311&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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