RBI Governor Announces Final Bi Monthly Monetary Policies Review

On the 5th of February,  Shaktikanta Das, the Governor of the Reserve Bank of India (RBI) announced the final bi monthly reviews over monetary policies.

Mr. Das announced the policies during a media conference.

Following are the highlights of the RBI monetary policy announced by RBI Governor Shaktikanta Das on the 5th of February.

* Interest rates left unchanged for 4th time in a row;

* Short-term lending rate (repo) stands at 4 pc;

* The RBI decides to continue with accommodative stance as long as necessary.

* The RBI Guv says Indian economy is poised to move in only one direction and that is upwards;

* The RBI projects GDP growth at 10.5 pc for 2021-2022.

* RBI revises retail inflation outlook; 5.2 pc for Q4:2020-21, 5 pc in H1:2021-22 & 4.3 pc for Q3:2021-2022

* Governor Das says Union Budget has provided strong impetus for revival of sectors like health, infrastructure.

* The RBI to restore CRR to 4 pc in two phases beginning March 2021;

* The RBI proposes to provide funds from banks under TLTRO on Tap scheme to NBFCs for incremental lending;

* The RBI announces new scheme to incentivise new credit flow to Minimum Small and Micro Enterprise (MSME.)

* The RBI to set up panel to provide a medium term road map for strengthening of Primary (Urban) Co-operative Banks;

* Retail investors to get direct access to government securities market; with this India would join select countries providing such facility;

* Round-the-clock helpline for digital payment services to be set-up for grievance redressal;

* RBI will integrate all Ombudsman schemes & introduce centralised processing of grievances;

* Next meeting of the RBI Guv headed rate-setting panel MPC to take place during April 5 to 7.

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