MPC in 2 minutes: Here're the key development and regulatory steps
The six-member MPC kept interest rates on hold, but said it will keep its stance accommodative to support the government's huge borrowing programme
monetary policy committee | RBI monetary policy | MPC
The MPC unanimously decided to keep the repo rates unchanged at 4% and an accommodative stance
Reverse repo rate under LAF unchanged at 3.35%, while the MSF and bank rate remained at 4.25%
CPI inflation has been projected at 5.2% for 2020-21; 5.2% for H1FY22, and 4.3% for Q3FY22; the real GDP has been projected to grow at 10.5 per cent in FY22
Development & regulatory steps
NBFCs can now access funds from banks under the on-tap TLTRO scheme for incremental lending to stressed sectors
Decided to restore the CRR in two phases. Banks have to maintain CRR of 3.5% from March 27, 2021 and 4% from May 22, 2021
The MSF relaxation, under which banks can avail funds by dipping into SLR up to an additional 1%, will continue till Sept, 2021
The increased limits of SLR holdings in held-to-maturity up to 22% will continue till March, 2023
Banks will be able to deduct credit disbursed to “new MSME borrowers” for up to Rs 25 lakh from their NDTL for calculation of CRR
FPI investment in defaulted corporate bonds will be exempted from the short-term limit and the minimum residual maturity requirement
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
First Published: Sat, February 06 2021. 01:06 IST