In a surprise move, Reserve Bank of India Governor Raghuram Rajan raised the repo rate by 25 basis points to 7.5 per cent, while presenting his first monetary policy review after taking charge of his office earlier this month.
With this, the reverse repo rate, or the rate at which the RBI sucks out liquidity, stands revised at 6.5 per cent.
The RBI also revised the Marginal Standing Facility - the rate at which banks access funds for emergency needs - by 75 basis points to 9.5 per cent.
Former governor D. Subbarao had raised the MSF by 200 basis points in July as part of slew of cash tightening steps aimed at rescuing the rupee.
The cash reserve ratio, or the portion of deposits banks have to maintain with the central bank, stands unchanged at four per cent.
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