All RBI Circulars June 2025 detailed explanation I Monthly RBI Circulars - June I Hindi

All RBI Circulars June 2025 detailed explanation I Monthly RBI Circulars - June I Hindi
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Liquidity Adjustment Facility - Change in rates

As announced in the Monetary Policy Statement dated June 06, 2025, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points from 6.00 per cent to 5.50 per cent with immediate effect. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 5.25 per cent and 5.75 per cent respectively, with immediate effect. All other terms and conditions of the extant LAF Scheme will remain unchanged.


Standing Liquidity Facility for Primary Dealers

As announced in the bi-monthly Monetary Policy Statement, 2025-26 dated June 06, 2025 , it has been decided by the Monetary Policy Committee (MPC) to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points from 6.00 per cent to 5.50 per cent with immediate effect.
Accordingly, the Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate of 5.50 per cent with immediate effect.


Review of Qualifying Assets Criteria

Please refer to paragraph 8.1 of the Master Direction - Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022 dated March 14, 2022 which prescribes Qualifying Assets Criteria for Non-Banking Financial Companies - Microfinance Institutions.

On a review, it has been decided to revise the qualifying asset criteria and the amended paragraph 8.1 of the Master Direction may be read as follows.

Paragraph 8.1:

The definition of ‘qualifying assets’ of NBFC-MFIs has been aligned
with the definition of ‘microfinance loans’ given at paragraph 3
above.

Qualifying assets of NBFC-MFIs shall constitute a minimum of 60
percent of the total assets (netted off by intangible assets), on an
ongoing basis. If an NBFC-MFI fails to maintain the qualifying assets as aforesaid for four consecutive quarters, it shall approach the Reserve Bank with a remediation plan for taking a view in the matter.

Penal Interest on shortfall in CRR and SLR requirements-Change
in Bank Rate

Please refer to Chapter VIII of Master Direction - Reserve Bank of India [Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)] Directions – 2021 as well as our circular April 09, 2025 on the captioned subject.As announced in the Monetary Policy Statement 2025-26 dated june 06, 2025, the Bank Rate is revised downwards by 50 basis points from 6.25 per cent to 5.75 per cent with immediate effect.

Accordingly, all penal interest rates on shortfall in CRR and SLR requirements, which are specifically linked to the Bank Rate, also stand revised as under:

Maintenance of Cash Reserve Ratio (CRR)

As announced in the Governor’s Statement dated June 06, 2025, it has been decided to reduce the Cash Reserve Ratio (CRR) of all banks by 100 basis points in four equal tranches of 25 basis points each to 3.0 per cent of net demand and time Liabilities (NDTL).

Accordingly, banks are required to maintain the CRR at 3.75 per cent, 3.5 per cent, 3.25 per cent and 3.0 per cent of their NDTL effective from the reporting fortnight beginning September 6, October 4, November 1 and November 29, 2025, respectively.