RBI maintains status quo on Repo, policy rates, but changes stance to Neutral
The Reserve Bank of India (RBI) announced its fourth bi-monthly monetary policy for FY25 today, October 9. The RBI’s rate-setting committee (MPC) kept the benchmark repo rate unchanged at 6.5% for the tenth straight meeting. However, RBI maintains the status quo on policy rates, but changes its stance to Neutral from ‘withdrawal of accommodation’; GDP…
Read article Effects of Repo Rate, SDF rate changes
Repo suggests the rate at which liquidity is injected into the banking system whereas Reverse Repo is the rate at which RBI absorbs liquidity from the banks. RBI controls the money supply in the country by effecting the changes in repo rate & reverse repo rate. Therefore repo and SDF (reverse repo rate) are known…
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RBI guidelines on Levying of Service Charges
Service charges are intended to cover the cost of services provided by the bank. As per RBI guidelines, for basic charges rendered to individuals, banks will levy charges ad valorem subject to a cap. RBI working group recommended service charges shall be fixed on a principle that fixing lower rates for individuals as compared to…
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Shortly, in a few hours you will know the fate of the clearing cheque presented under CTS
RBI in its Statement on Developmental and Regulatory Policies on Thursday (August 8, 2024) announced the implementation of Continuous Clearing of Cheques under the Cheque Truncation System (CTS). The Cheque Truncation System (CTS) is an online Image-based Clearing System (ICS). In this system of clearing, the collecting bank need not present the physical cheque to…
Read article Statement of RBI MPC Meeting held today: Repo rate remains unchanged
“The Monetary Policy Committee held on Thursday (August 8) decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth. “These decisions are in consonance to achieve the medium-term…
RBI Act 1934 – Chapter I to V
This post has covered all the sections of the RBI Act 1934 Chapter I to V. However, given this post comprises a large volume of sections, we have separately posted one more article containing important sections of the act. To read them click “IMPORTANT SECTIONS AND SCHEDULES OF RBI ACT 1934 AND BACKGROUND OF ENACTMENT”…
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