The Reserve Bank of India (RBI) Tuesday increased repo rate, a key policy interest rate, by 0.25 percent to 7.75 percent.
In its quarterly review of the monetary policy, the central bank kept the Cash Reserve Ratio (CRR), the proportion of money that commercial banks must keep with the RBI, unchanged at 4 percent.
However, it cut the marginal standing facility (MSF) rate by 0.25 percent to 9.25 percent. MSF is a window for banks to borrow from the RBI.