Policy Interest Rate and SRR

Overnight Policy Rate

Overnight Policy Rate (OPR) is the policy interest rate of the Central Bank under the single policy interest rate mechanism (w.e.f. 27 November 2024). It is the primary monetary policy instrument that signals the Central Bank’s monetary policy stance.
[The use of the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) as policy interest rates were discontinued w.e.f. 27 November 2024 following the introduction of OPR]*

Statutory Reserve Requirement

The proportion of rupee deposit liabilities that commercial banks are required to maintain as a deposit with the Central Bank.

*Note: SDFR and SLFR are linked to the OPR with a pre-determined margin as decided by the Central Bank.