The 6th bimonthly monetary policy has been disclosed by Reserve Bank of India (RBI). The apex bank has decided to keep Repo rate unchanged at 7.75%. Also Cash reserve ratio (CRR) was kept unchanged at 4%. However it has decided go for a cut in SLR. To encourage banks to lend more, the central bank reduced the statutory liquidity ratio (SLR) [the minimum deposits that banks necessarily have to invest in Government securities of scheduled commercial banks] by 50 basis points from 22.0 per cent to 21.5 per cent of their deposits with effect from the fortnight beginning February 7, 2015. Foreign exchange remittance limit was increased to $250000 per person a year.
Click Here to View – RBI increases Foreign exchange remittance limit to $250,000 per person a year
Policy Rates in 6th Bimonthly monetary policy review
Repo rate – 7.75% Was unchanged under liquidity adjustment facility (LAF).
Reverse repo rate – Kept unchanged at 6.75% under liquidity adjustment facility (LAF).
SLR (Statutory liquidity ratio) – Unchanged at 21.5% of their NDTL (Net demand and time liability).
Bank rate – Was fixed at 8.75%
under liquidity adjustment facility.
Marginal standing facility (MSF) – 8.75%
Cash reserve ratio (CRR) – Unchanged at 4% of Net Demand and Time Liability (NDTL)
The Reserve Bank of India has replaced the export credit refinance (ECR) facility with the provision of system-level liquidity with effect from February 7, 2015.