Highlights of RBI's monetary policy statement

Following are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday:
*
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 *
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 *