A 2 minutes' guide to RBI monetary policy

From liquidity, monetary policy operations to financial inclusion, know about RBI monetary policy

Liquidity and monetary policy operations

* Repo rate kept unchanged at 6.25%

* Policy rate corridor for repo rate reduced from +/- 50 basis points (bps) to +/- 25 bps 

* Reverse repo rate increased by 25 bps to 6% from 5.75%

* Marginal Standing Facility (MSF) rate reduced by 25 bps to 6.5%

* RBI to employ a mix of instruments to ensure liquidity 

* Government examining introduction of Standing Deposit Facility (SDF); this would give greater flexibility to manage liquidity operations

Banking regulation and supervision

* Minimum net owned funds for asset reconstruction companies increased from Rs 2 crore to Rs 100 crore

* Banks allowed to