Latest RBI Interest Rates: A Quick Summary (June 2025)

The Reserve Bank of India (RBI) plays a key role in managing the country’s money supply, inflation, and overall economic health.

One of the main tools it uses is the adjustment of key policy rates like the Repo Rate, Reverse Repo Rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), and others.

These rates directly impact bank loans, deposit interest rates, and even the prices of goods and services.

In this article, we provide a quick and simple overview of the current RBI policy rates as of June 2025.

Whether you’re a student, investor, or just curious about the economy, this summary will help you understand where things stand.

RBI Policy Rates

  1. ① Repo Rate – 5.50%

    This is the rate at which the RBI gives short-term loans to banks.

  2. ② Reverse Repo Rate – 3.35%

    This is the rate the RBI pays banks for parking their excess funds.

  3. ③ Standing Deposit Facility (SDF) – 5.25%

    Discounted deposit rate—banks earn this if they deposit money overnight with RBI.

  4. ④ Marginal Standing Facility (MSF) – 5.75%

    Penalty borrowing rate—banks pay this to get emergency funds overnight.

  5. ⑤ Bank Rate – 5.75%

    Longer-term lending rate—aligned with MSF.

    6. Reserve Ratios

  6. ⑥ Cash Reserve Ratio (CRR) – 3.00% (being reduced in steps from 4%)

    The percentage banks must hold as cash with RBI, not available for lending.

  7. ⑦ Statutory Liquidity Ratio (SLR) – 18.00%

    The percentage of deposits banks must hold in government-backed assets like bonds or gold.

What This Means for You

  1. Repo Rate (5.50%): Influences interest on home, car, and personal loans. Lower repo rate → cheaper EMIs.
  2. Reverse Repo (3.35%): Affects how banks handle their extra money. Lower rate sometimes encourages more lending.
  3. SDF / MSF / Bank Rate: Manage short-term liquidity in the banking system. These help keep overnight lending and borrowing stable.
  4. CRR (3%): Lowering CRR gives banks more funds to lend, making credit more accessible.
  5. SLR (18%): Makes sure banks keep a safety buffer in secure assets; too high can limit their lending capacity.

Why These Matter

TermWhat It MeansWhy It Counts
Repo RateRBI lending rate to banksAffects loan interest rates for customers
Reverse RepoRate RBI pays to banksHelps control excess cash flow in banks
SDF / MSF / Bank RateConnect to liquidity managementSDF is bank’s overnight deposit rate; MSF is emergency borrow rate
CRR / SLRMandatory reserves banks must holdInfluence how much banks can lend to people/businesses

Final Thoughts

In summary, these are the latest RBI policy rates as of June 2025, updated after the quarterly meeting. Together, they shape the cost and availability of credit—affecting you via loan interest rates, bank lending behavior, and overall economic health.