The Reserve Bank of India did not change policy rates for the third consecutive year. They have kept their stance soft even on Friday. The repo rate was cut twice in March and May 2020. RBI policy rates remained unchanged even in October. After the Reserve Bank’s decision, the repo rate remained at 4 percent and the reverse repo rate at 3.35 percent. Come, learn about the key decisions of the MPC meeting …
RBI Monetary Policy: No change in repo rate and reverse repo rate
- The RBI has proposed to increase the limit of contactless card payments to Rs 5,000 from January 2021 to 2000.
- The RBI governor says the RTGS system will soon be reduced to 24×7 in the next few days
- Governor Das proposes to set the standard for NBFC dividend distribution, risk based auditing in large NBFCs and cooperative banks.
- RBI governor says commercial and cooperative banks retain profits and do not issue dividends to FY21
- Das said the TLTRO will be extended in collaboration with the ECLGS project.
- Das says growth is expected to move into a positive area in the third and fourth quarters. It is estimated to grow by 0.1 and 0.7 percent in the third quarter and fourth quarter, respectively.
- Das said real GDP growth for 2021 is estimated at -7.5%.
- Das said that in the interest of financial stability and the interest of the depositors, we have solved the problems at the two scheduled commercial banks.
- The RBI has maintained a soft stance on monetary policy, expecting inflation to decline over the winter.
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