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SLF for Primary Dealers: Repo Rate Hiked to 4.90%

Current · Source: Reserve Bank of India · RBI/2022-23/64 · issued 08 Jun 2022 · ~1 min read
Quick answerRBI raised the repo rate by 50 bps to 4.90% effective June 8, 2022. Consequently, the Standing Liquidity Facility for Primary Dealers is now priced at the new repo rate. This aligns PD borrowing costs with the monetary policy stance.
The rule, in the simplest words
How it plays out — a real example

A treasury officer in Indore, Priya, checks the daily rate sheet and sees the SLF for Primary Dealers is now 4.90%. She reminds her treasury team to update their loan pricing models so that any short-term borrowing from the RBI reflects the higher cost, ensuring their gold loan rates stay profitable.

What changed

The policy repo rate under the Liquidity Adjustment Facility was increased by 50 basis points from 4.40% to 4.90% with immediate effect from June 8, 2022. Accordingly, the Standing Liquidity Facility (collateralised liquidity support) provided to Primary Dealers is now available at the revised repo rate of 4.90% from the same date.

What it means for you

Primary Dealers will face higher borrowing costs for collateralised liquidity from the RBI, directly impacting their funding expenses. This rate hike signals tighter monetary conditions, which may lead to higher short-term rates in the money market. Banks and PDs should reassess their liquidity management and funding strategies in response to the increased cost.

What you must do

Who it affects

Primary Dealers, Treasury departments of banks, Money market participants

❓ 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 rate for the Standing Liquidity Facility for Primary Dealers?

The SLF rate is now 4.90%, effective June 8, 2022, following the 50 bps hike in the repo rate.

Does this change affect other RBI liquidity facilities?

This notification specifically applies to the SLF for Primary Dealers. Other facilities may be adjusted separately as per RBI guidelines.

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/64 MPD.BC.393/07.01.279/2022-23 June 8, 2022 All Primary Dealers, Standing Liquidity Facility for Primary Dealers In the Monetary Policy Statement 2022-23, dated June 8, 2022 , the policy repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 50 basis points from 4.40 per cent to 4.90 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 4.90 per cent with effect from June 8, 2022. Yours faithfully, (Muneesh Kapur) Adviser-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/64 · issued 08 Jun 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 SLF rate of 4.90% for PD borrowings.
📜 Compliance
  • Review liquidity contingency plans to account for higher funding costs.
  • Communicate the rate change to treasury and dealing teams for accurate pricing.
  • Monitor money market rates for 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, Money market participants), your first concrete step on “SLF for Primary Dealers: Repo Rate Hiked to 4.90%” is: “Update internal systems to reflect the new SLF rate of 4.90% for PD borrowings.” (RBI issued this 08 Jun 2022).

  1. Circular: RBI/2022-23/64 -- SLF for Primary Dealers: Repo Rate Hiked to 4.90%
  2. Issued: 08 Jun 2022
  3. Action required: Update internal systems to reflect the new SLF rate of 4.90% for PD borrowings.
  4. Action required: Review liquidity contingency plans to account for higher funding costs.
  5. Action required: Communicate the rate change to treasury and dealing teams for accurate pricing.
  6. Action required: Monitor money market rates for 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=12332&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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