BUSINESS
06/06/2019 12:44 PM IST

Monetary Policy: RBI Cuts GDP Growth Forecast To 7%, Waives RTGS And NEFT Charges

RBI had cut GDP growth forecast to 7% from 7.2% for FY19-20.

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RBI Governor Shaktikanta Das at a news conference at the RBI head office in Mumbai on 4 April 2019.

Mumbai — Here are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday:

— Repo rate reduced by 25 bps to 5.75 pc for third time in a row

— Reverse repo rate now stands at 5.50 pc, marginal standing facility (MSF) rate 6 pc

— RBI changes policy stance to accommodative from neutral

— Cuts GDP growth forecast to 7pc from 7.2 pc for FY20

— Raises retail inflation forecast for Apr-Sept to 3-3.1 pc and 3.4-3.7 pc in October-March

— Waives RTGS and NEFT charges to promote digital transactions

— Projects upward bias in food inflation in near term due to rising prices of food items 

— Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario

— Sets up a panel to review ATM charges, fees levied by banks

— To issue draft guidelines for ‘on tap’ licensing of small finance banks by Aug

— Flags sharp slowdown in investments, moderation in private consumption growth as concern

— All six MPC members voted in favour of 0.25 pc policy rate cut

— Average daily surplus liquidity in the system at Rs 66,000 crore in early June

— Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019

 

The next monetary policy statement on August 7.