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RBI Policy Rates

Comprehensive insights into the Reserve Bank of India's monetary policy rates, historically tracked and visualized.

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Policy Repo Rate info_outline
Policy Repo Rate

The rate at which the RBI lends money to commercial banks in the event of any shortfall of funds.

Think of the RBI as the "bank for banks". When your bank needs money, it borrows from the RBI at this rate. If the Repo Rate goes up, borrowing becomes more expensive for your bank, which is why they increase the interest rates on your home or car loans.
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SDF Rate info_outline
SDF Rate

Standing Deposit Facility Rate. The rate at which the RBI absorbs liquidity from banks without offering government securities as collateral.

When banks have extra cash, they can park it with the RBI to earn this interest rate. It acts like a risk-free savings account for banks, allowing the RBI to control inflation by absorbing excess money from the economy.
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MSF Rate info_outline
MSF Rate

Marginal Standing Facility Rate. The penal rate at which banks can borrow money from the RBI when their liquidity completely dries up.

This serves as an emergency borrowing window. If a bank urgently needs money overnight and has exhausted its normal borrowing limits, it uses the MSF. Because it's an emergency, the RBI charges a higher penalty interest rate compared to the standard Repo Rate.
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Bank Rate info_outline
Bank Rate

The standard rate at which the RBI is prepared to buy or re-discount bills of exchange or other commercial paper.

While the Repo Rate is used for short-term daily needs, the Bank Rate applies when banks borrow long-term from the RBI without providing collateral. It typically aligns with the MSF rate and is used as a benchmark to calculate penalty charges for banks.
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Base Rate info_outline
Base Rate

The minimum interest rate below which banks cannot lend, except in cases permitted by the RBI.

This acts as the absolute "floor" price for loans. To ensure banks maintain financial stability and don't aggressively undercut each other, the RBI mandates that loans cannot be offered cheaper than this rate. (Note: This has been mostly replaced by the MCLR for newer loans).
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MCLR (Overnight) info_outline
MCLR

Marginal Cost of Funds based Lending Rate. The minimum lending rate below which a bank is not permitted to lend.

This is the modern benchmark replacing the Base Rate. It’s calculated based on a bank's internal cost to arrange funds. If a bank starts paying higher interest on fixed deposits, its cost of funds increases, which pushes the MCLR up and makes your floating-rate loans more expensive.
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Savings Deposit info_outline
Savings Deposit Rate

The typical interest rate range offered by major commercial banks on savings account deposits. This acts as the baseline interest you earn on idle money sitting in a standard bank savings account.
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Term Deposit > 1Y info_outline
Term Deposit Rate

The typical interest rate range offered by major commercial banks on term deposits (FDs) with a maturity of more than one year. This reflects the average returns you can expect when locking in your money for longer periods.
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account_balance Primary Policy Rates

Comparing the main Repo Rate against the historical Reverse Repo Rate

swap_vert Liquidity Adjustment Facility (LAF) Corridor

The ceiling (MSF), floor (SDF/Reverse Repo), and primary Repo Rate

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Historical trajectory of the standard Bank Rate

pie_chart_outline Reserve Ratios (CRR & SLR)

Historical trends of Cash Reserve Ratio and Statutory Liquidity Ratio

help_outline Frequently Asked Questions (FAQs) & Policy Guide

Key insights into RBI Policy Repo Rate, monetary policy mechanisms, and loan EMI impacts.

The Policy Repo Rate is the key interest rate at which the Reserve Bank of India (RBI) lends short-term funds to commercial banks against government securities. It serves as the primary benchmark for monetary policy in India.

When the Monetary Policy Committee (MPC) hikes the Repo Rate, borrowing becomes more expensive for banks, which cools down credit growth and curbs consumer inflation. Conversely, cutting the Repo Rate injects liquidity into the market to stimulate economic growth. Explore full macroeconomic indicators on our Macro Insights page.

Most floating-rate retail loans (Home Loans, Auto Loans, Personal Loans) in India are linked to the RBI Repo Rate via the External Benchmark Lending Rate (EBLR/RLLR) or MCLR. When the RBI raises the Repo Rate by 25 basis points (0.25%), banks automatically increase their lending benchmark, resulting in either a higher monthly EMI or an extended loan tenure.

On the flip side, higher repo rates push banks to offer higher interest rates on Fixed Deposits (FDs) and Savings Accounts to attract retail liquidity. Calculate your exact loan repayments using our Loan EMI Calculator and compare FD returns on our Fixed Deposit Calculator.

The LAF Corridor is the operational interest rate band established by the Reserve Bank of India to manage daily interbank liquidity:

  • Standing Deposit Facility (SDF) Rate (Floor): The lower bound rate at which banks park surplus cash with the RBI overnight without needing government securities as collateral.
  • Policy Repo Rate (Center): The benchmark interest rate for standard short-term borrowing.
  • Marginal Standing Facility (MSF) Rate (Ceiling): The penal upper bound rate at which banks can borrow emergency overnight liquidity from the RBI against collateral.

Besides interest rates, the RBI uses reserve ratios to control money supply in the Indian banking system:

  • Cash Reserve Ratio (CRR): The percentage of Net Demand and Time Liabilities (NDTL) that commercial banks must keep as cash reserves with the RBI. No interest is earned on CRR balances.
  • Statutory Liquidity Ratio (SLR): The percentage of deposits banks are required to maintain in safe, liquid assets like gold or Government of India securities (G-Secs) before extending credit to borrowers.

The RBI's 6-member Monetary Policy Committee (MPC) meets bi-monthly (six times a year) to review macroeconomic conditions, CPI retail inflation data, and GDP growth forecasts. The MPC's official primary mandate is to maintain consumer price index (CPI) inflation within a target tolerance band of 4% (+/- 2%) while supporting economic growth.

You can read the official policy statements, resolutions, and meeting minutes directly on the RBI Monetary Policy Statements & Resolutions portal.