June 7, 2017- The Reserve Bank of India on Wednesday in its second Bi-Monthly Statement for 2017-18, kept the key policy rates unchanged. With the above monetary policy decision of the apex bank, the repo rate (the rate at which banks borrow funds from the RBI) stays at 6.25 per cent.
Further, the Monetary Policy Committee (MPC) has taken a decission to reduce the Statutory Liquidity Ratio (SLR) of commercial banks, primary (urban) co-operative banks (UCBs), state co-operative banks and central co-operative banks from 20.5 per cent of their Net Demand and Time Liabilities (NDTL) to 20.00 per cent from the fortnight commencing June 24, 2017.
It is informed in the RBI’s Press Release that the six members Monetary Policy Committee (MPC) has taken neutral stance in view of consonance with the objective of achieving the medium term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 %, while supporting growth.
The policy key rates at present are as under.
|CRR (Cash Reserve Ratio)||4.00%|
|SLR (Statutory Liquidity Ratio)
|Reverse Repo Rate||6.00%|
|MSF Rate (Marginal Standing Facility Rate)||6.50%|