The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has chosen to maintain a status quo on the key rates and kept the repo rate unchanged in the 4th bi-monthly policy. The repo rate is kept unchanged at 4% for the financial year 2021-22 headed by the RBI governor Shaktikant Das who also chairs the MPC. As per the reports, RBI governor Shaktikanta Das said that “the MPC voted unanimously to maintain status-quo about policy repo rate and by a majority of 5:1 to maintain the accommodative stance”. To know the detailed information for the RBI monetary Policy 2021-22 read the article below.
RBI Monetary Policy: Repo Rate Unchanged
|Reverse Repo Rate||3.35%|
|Marginal Standing Facility Rate (MSF)||4.25%|
|Cash Reserve Ratio (CRR)||4%|
|Statutory Liquidity Ratio (SLR)||18%|
RBI Monetary Policy: Highlights & Key Points
- Bond purchases under G-SAP stopped.
- FY22 GDP growth forecast- 9.5%.
- CPI inflation is projected at 5.3% for the current fiscal year.
- Open market operations (OMO) to continue as needed.
- On-tap special LTRO of 3 years worth Rs 10,000 crore for small businesses extended till 31st December.
- Framework planned for retail digital payments in offline mode.
- Immediate Payment Service (IMPS) limited upped from Rs 2 lakh to Rs 5 lakh.
- No compulsion for banks to park money in variable reverse repo rate (VRRR).
Formation of Monetary Policy Committee:
- Shri Shaktikanta Das- Governor of the Reserve Bank of India – Chairperson, ex officio.
- Dr. Michael Debabrata Patra- Deputy Governor of the Reserve Bank of India, in charge of Monetary Policy– Member, ex officio.
- Dr. Mridul K. Saggar- One officer of the Reserve Bank of India to be nominated by the Central Board – Member, ex officio.
- Prof. Ashima Goyal- A professor at the Mumbai-based Indira Gandhi Institute of Developmental Research.
- Prof. Jayanth R Varma- A professor of finance at the Indian Institute of Management in Ahmedabad.
- Dr. Shashanka Bhide- An agricultural economist and a senior adviser with the National Council of Applied Economic Research in New Delhi.
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