The Reserve Bank of India (RBI) has kept its key policy rate, the Repo Rate (RR), at 6.25 %. This was the second meeting of the Monetary Policy Committee (MPC) since its formation two months ago. It was the second monetary review of Urjit Patel, since his taking over as the Governor of RBI on 6th September this year.
The Reserve Bank of India has withdrawn the incremental cash reserve ratio (CRR) of 100%. The incremental ratio was effective from the fortnight beginning November 26 as a temporary measure to absorb excess liquidity in banking system following demonetisation. The move was estimated to remove around Rs. 3.24 lakh crore of excess liquidity.
RBI Policy Rate’s:
|
Repo Rate
|
6.25%
|
|
Reverse Repo Rate
|
5.75%
|
|
Marginal Standing Facility Rate
|
6.75%
|
|
Bank Rate
|
6.75%
|
|
CRR
|
4%
|
|
SLR
|
20.75%
|
Source-The Hindu