Policy in 2 minutes
Monetary and liquidity measures
- Repo rate kept unchanged at 7.75%
- Cash Reserve Ratio (CRR) left at 4%
- SLR floor reduced 50 bps to 21.5%, effective February 7
- Export credit refinance (ECR) facility abolished
- CPI-based inflation seen at 6% by January 2016
- GDP growth projection retained at 5.5% (old base)
- Central estimate for real GDP growth in 2015-16 is 6.5%
- Current account deficit seen at 1.3% of GDP for FY15
- Increase in limit for FX remittances under LRS to $250,000/ person per year from $125,000
- Proposes to allow non-callable deposits
- Forms external committee to vet payments bank, small finance bank licence applications
- Freedom to extend DCCO for stalled projects involving management change with standard loan status
- Waiver from some pricing rules for converting loans into equity for restructuring cases
- Greater flexibility in pricing of debt instruments
- Facilitating reinvestment of coupons in G-sec despite existing limits being fully utilised
- Future investment by foreign investors in debt to be made with minimum residual maturity of 3 years
- Foreign investors will not be allowed to invest incrementally in short maturity mutual fund schemes
- Overnight MIBOR calculation to be shifted to transaction-based system by April