Mumbai, Jun 6: Following are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday. RBI Cuts Repo Rate For 3rd Consecutive Time Bringing It Down From 6% to 5.75%; Home Loans & EMIs Likely to Turn Cheaper.
* 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
Oct-Mar
* 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
* Waives RTGS and NEFT charges to promote digital transactions. NEFT And RTGS Transaction Charges Waived Off by RBI.
* 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
* Next monetary policy statement on August 7.