Page 46 - Banking Finance MAY 2017

RBI CIRCULAR

February 9, 2017 on the above subject. The Statement, 2017-18 Resolution of the Monetary Policy
Government of India, had vide their Office Committee (MPC), consequent upon the narrowing of the
Memorandum (OM) No.F.No.1/4/2016-NS.II dated LAF corridor, the Marginal Standing Facility (MSF) rate now
March 31, 2017 advised the rate of interest on various stands adjusted at 6.50 per cent.
small savings schemes for the first quarter of the
financial year 2017-18. All other terms and conditions of the current MSF scheme
will remain unchanged.
2. The contents of this circular may be brought to the
notice of the branches of your bank operating
Government Small Saving Schemes for necessary Yours sincerely
action. These should also be displayed on the notice (Radha Shyam Ratho)
boards of your branches for information of the Chief General Manager
subscribers to these Schemes.
Change in Bank Rate
Yours faithfully
RBI/2016-17/270
(Harsha Vardhan)
Manager DBR.No.Ret.BC.58/12.01.001/2016-17

1. Please refer to our circular DBR.No.Ret.BC.19/
Liquidity Adjustment Facility - Repo and 12.01.001/2016-17 dated October 04, 2016 on the
Reverse Repo Rates captioned subject.
2. As announced in the First Bi-Monthly Monetary Policy
RBI/2016-2017/268
Statement 2017-18 dated April 06, 2017, the Bank
FMOD.MAOG. No. 118/01.01.001/2016-17
Rate stands adjusted by 25 basis points from 6.75 per
cent to 6.50 per cent with effect from April 06, 2017.
As announced in the First Bi-monthly Monetary Policy
Statement, 2017-18 Resolution of the Monetary Policy 3. All penal interest rates on shortfall in reserve
Committee (MPC), it has been decided to keep the Repo requirements, which are specifically linked to the Bank
rate under the Liquidity Adjustment Facility (LAF) unchanged Rate, also stand revised as indicated in the Annex.
at 6.25 per cent.
Yours faithfully,
(Saurav Sinha)
However, consequent upon the narrowing of the LAF
corridor, the Reverse Repo rate under the LAF now stands Chief General Manager
adjusted at 6.0 per cent. Annex

This change will come into force with immediate effect. All Penal Interest Rates which are linked to the Bank Rate
other terms and conditions of the current LAF Scheme will Item Existing Rate Revised Rate
remain unchanged. (Effective from
April 06, 2017)
Yours sincerely
Penal interest Bank Rate plus Bank Rate plus 3.0
(Radha Shyam Ratho)
rates on shortfalls 3.0 percentage percentage points
Chief General Manager
in reserve points (9.75 per (9.50 per cent) or
requirements cent) or Bank Bank Rate plus 5.0
Marginal Standing Facility
(depending on Rate plus 5.0 percentage points
RBI/2016-2017/269 duration of percentage (11.50 per cent).
shortfalls). points (11.75
FMOD.MAOG. No.119/01.18.001/2016-17
per cent).
As announced in the First Bi-monthly Monetary Policy

46 | 2017 | MAY | BANKING FINANCE

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010