The 6th bimonthly monetary policy review by RBI

February 3, 2015

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

RBI bimonthly monetary policy

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.

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