The Monetary Policy Committee (MPC) met on the 4th, 5th and 6th of February to deliberate and decide on the policy repo rate. After a detailed assessment of theevolving macroeconomic conditions and the outlook, the MPC voted unanimously to keep the policy repo rate unchanged at 5.25 per cent; consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) 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.
As a result, the following adjustments have come into effect:
Updated RBI Policy Rates
| Instrument | New Rate |
| CRR | 3.00% |
| SLR | 18% |
| Repo rate | 5.50% |
| SDF* | 5.25% |
| *Reverse repo rate | 3.35% |
| Bank Rate | 5.75% |
| MSF Rate (Marginal Standing Facility Rate) | 5.75% |
About the SDF
The Standing Deposit Facility (SDF), introduced in April 2022, is now the effective floor of the policy rate corridor. It allows banks to **park excess funds with the RBI without collateral**, helping absorb surplus liquidity and control inflation.
*While the reverse repo rate remains part of the RBI’s toolkit, its active use is currently limited, making it functionally redundant for now.
