The Monetary Policy Committee (MPC) met on the 3rd, 4th and 5th of June to deliberate and decide on the policy repo rate. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25 per cent; consequently, the standing deposit facility (SDF) rate remains at 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 5.50 per cent. The MPC also decided to continue with the neutral stance.
Updated RBI Policy Rates
| Instrument | Rate |
| CRR | 3.00% |
| SLR | 18% |
| Repo Rate | 5.25% |
| SDF | 5.00% |
| Reverse Repo Rate* | 3.35% |
| Bank Rate | 5.50% |
| MSF Rate | 5.50% |
*The reverse repo rate remains part of the RBI’s toolkit but is currently not actively used.
About the Standing Deposit Facility (SDF)
Introduced in April 2022, the Standing Deposit Facility (SDF) serves as the effective floor of the policy rate corridor. It allows banks to park excess funds with the RBI without the need for collateral, helping absorb surplus liquidity and support inflation control.
While the reverse repo rate still exists as a policy instrument, its role has diminished in the current framework, making the SDF the more relevant operational tool.
