CHANGE IN REPO RATE, REVERSE REPO RATE AND IN MSF RATE

As announced by the RBI Governor Duvvuri Subbarao, it has been decided to reduce the Repo rate the rate at which the RBI lends to banks by 25 basis points from 7.50% per cent to 7.25 % with immediate effect.

Consequent to the change in the Repo rate, the Reverse Repo rate, the rate which the RBI pays banks for depositing excess funds and the Marginal Standing Facility (MSF) rate will stand automatically adjusted to 6.25 % and 8.25 % respectively with immediate effect.

The Cash Reserve Ratio, the proportion of deposits to be kept with RBI is left unchanged at 4%.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769

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