Concerned over the recent cases of Kovid-19 transition and rising inflation, the Reserve Bank of India (RBI) decided to keep the prime lending rate unchanged at four per cent, but at the same time called for further cuts if needed to support the economy. Maintained a liberal stance. RBI Governor Shaktikanta Das, while announcing the decisions of the Monetary Policy Committee (MPC), said that the repo rate has been retained at four per cent. “With the consensus of all, it was also decided that liberal stance will be maintained as long as necessary to sustain growth on a sustainable basis and efforts will continue to reduce the impact of Kovid-19 on the economy,” he said. ”
The RBI kept the policy rate unchanged for the fifth time in a row, with the repo rate at 4 percent.
* Economic growth forecast for the current financial year remains at 10.5 percent.
RBI will maintain a liberal stance in monetary policy to support growth.
* Inflation will be maintained at the target level.
* The recent increase in cases of Kovid-19 infection has created uncertainty regarding economic recovery, the need to overcome virus infection.
* Estimates of 26.2 percent and 8.3 percent GDP growth in the June and September quarter respectively, while in December and March quarter, this figure can be 5.4 percent and 6.2 percent respectively.
The retail inflation estimate was revised to five percent for the March quarter of 2020-21.
* Retail inflation is expected to be 5.2 per cent in the June and September quarter.
Sufficient cash will be ensured in the system, so that the productive sectors get adequate credit.
* 50,000 crore additional cash facility to NABARD, NHB and SIDBI for new loan.
* Whatever will have to be done to maintain stability and protect financial companies from global disruptions.
* Maximum balance limit for each individual customer of payment banks increased from Rs 1 lakh to Rs 2 lakh at the end of the day.
* A committee was formed to comprehensively review the functioning of asset restructuring companies (ARCs).