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)
|
20.50%
20% * |
| Repo Rate | 6.25% |
| Reverse Repo Rate | 6.00% |
| MSF Rate (Marginal Standing Facility Rate) | 6.50% |
| Bank Rate | 6.50% |
Related articles:
Different types of repos in money market
Do you know that Repo auction frame work is different from different from rate
How RBI monitors money circulation in India?
What is bank rate?
Effects of Repo Rate, Reverse Repo rate changes
What is Marginal Standing Facility (MSF)?
The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the…
Global issues are problems of economic, environmental, social, and political concerns that affect the entire…
Sustainable development or 'Sustainability for development' refers to the development that is done without damaging…
The Reserve Bank of India today, in its circular informed that during the onsite examination…
Priority Sector lending (PSL) means bank lending to those sectors that the Government of India…
The World Bank was established in 1944 in the name of the International Bank for…