RBI Monetary Policy: Important announcements
New Delhi : RBI Monetary Policy 2021: Reserve Bank of India governor Shaktikanta Das on Friday announced bi-monthly RBI Monetary Policy 2021. This is the second such policy announced this fiscal year. The first was announced in April. Here are 10 big takeaways:
1. RBI Repo Rate, Reverse Rate
RBI decided to maintain the status quo and continued with accommodative stance. The Central Bank has not changed lending rate or RBI Repo Rate at 4 per cent. RBI also did not make any change in RBI Reverse Repo Rate or borrowing rate at 3.35 per cent.
2. India’s GDP Growth
Credit to second wave of coronavirus, the GDP growth has been slashed to 9.5 per cent from earlier 10.5 per cent.
3. For the first quarter India’s GDP growth estimate is 18.5 per cent, 7.3 per cent in the Quarter 2 of FY 22, 7.2 per cent in the third quarter of Financial Year 2021-2022, and 6.6 per cent in the fourth quarter of FY22.
4. CPI Inflation:
RBI Monetary Policy 2021 has estimated CPI inflation at 5.1 per cent for Financial Year 2021-2022.
5. RBI has predicted CPI inflation at 5.2 per cent in Quarter 1, 5.4 per cent in Quarter 2, 4.7 per cent in the third quarter, and 5.3 per cent in the fourth and final quarter.
6. RBI has kept the marginal standing facility (MSF) rate and bank rate unchanged at 4.25 per cent.
7. Liquidity window for restaurants, tourism, aviation support services: RBI has stated that a separate liquidity window of Rs 15,000 crore will remain till March 31, 2022 for contact-intensive sectors. Under this, banks can provide support to aviation support services, tourism sector, hotels and restaurants under this programme.
8. Reserve Bank of India has extended a special liquidity facility worth Rs 16,000 crore to SIDBI for on-lending and refinancing.
9. RBI will expand the limit of restructure loans for small businesses and individual to Rs 50 crore from earlier Rs 25 crore.
10. National Automated Clearing House (NACH) payment system will function on seven days a week from August, 2021. So far, the facility is available only on banks’ working days.