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Repo Rate Hiked 50 bps to 4.90%: SDF & MSF Adjusted

Current · Source: Reserve Bank of India · RBI/2022-23/63 · issued 08 Jun 2022 · ~1 min read
Quick answerRBI hiked the repo rate by 50 bps to 4.90% effective immediately. SDF and MSF rates adjusted to 4.65% and 5.15% respectively. All other LAF terms unchanged.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore checks the new repo rate of 4.90% and tells her branch manager, 'Our cost of funds from RBI just went up, so we need to raise our gold-loan interest rates by about 0.50% to keep our profit margin.' She then updates the loan pricing sheet for customers.

What changed

The Monetary Policy Committee raised the policy repo rate by 50 basis points from 4.40% to 4.90% with immediate effect. Consequently, the SDF rate moved to 4.65% and the MSF rate to 5.15%.

What it means for you

Banks will face higher cost of funds from RBI's LAF window, impacting their lending and deposit rates. This signals tighter monetary policy to control inflation, likely leading to higher loan EMIs and deposit rates for customers.

What you must do

Who it affects

All LAF participants (banks and primary dealers), Treasury and asset-liability management teams, Retail and corporate loan customers, Deposit holders

❓ Common questions

What is the new repo rate effective from June 8, 2022?

The repo rate has been increased by 50 basis points to 4.90% with immediate effect.

How have the SDF and MSF rates changed?

The SDF rate is now 4.65% and the MSF rate is 5.15%, both effective immediately.

Are any other terms of the LAF scheme changed?

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

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/63 FMOD.MAOG.No.145/01.01.001/2022-23 June 08, 2022 All Liquidity Adjustment Facility (LAF) participants Madam/Sir, Liquidity Adjustment Facility - Change in rates 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 50 basis points from 4.40 per cent to 4.90 per cent with immediate effect. 2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 4.65 per cent and 5.15 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/2022-23/63 · issued 08 Jun 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Update internal systems and customer-facing documents with the revised SDF and MSF rates.
📜 Compliance
  • Review and adjust your bank's lending and deposit rate slabs to reflect the new repo rate.
  • Communicate the rate change impact to treasury and ALM teams for liquidity planning.
  • Prepare for potential increase in borrowing costs and recalibrate loan pricing models.
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 (banks and primary dealers), Treasury and asset-liability management teams, Retail and corporate loan customers, Deposit holders), your first concrete step on “Repo Rate Hiked 50 bps to 4.90%: SDF & MSF Adjusted” is: “Review and adjust your bank's lending and deposit rate slabs to reflect the new repo rate.” (RBI issued this 08 Jun 2022).

  1. Circular: RBI/2022-23/63 -- Repo Rate Hiked 50 bps to 4.90%: SDF & MSF Adjusted
  2. Issued: 08 Jun 2022
  3. Action required: Review and adjust your bank's lending and deposit rate slabs to reflect the new repo rate.
  4. Action required: Communicate the rate change impact to treasury and ALM teams for liquidity planning.
  5. Action required: Update internal systems and customer-facing documents with the revised SDF and MSF rates.
  6. Action required: Prepare for potential increase in borrowing costs and recalibrate loan pricing models.
  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=12331&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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