Reserve Bank of India announces monetary policy

FINANCE

The Reserve Bank of India in its bi-monthly Monetary Policy Statement issued today has maintained a status quo keeping the key interest rates unchanged.

The reverse repo rate remains unchanged at 3.35 per cent, the repo rate at four per cent.

The Monetary Policy Committee decided to maintain its accommodative stance at least through the current financial year and next year. The Indian economy is entering into a decisive phase in its fight against coronavirus.

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RBI Governor Shaktikanta Das today proposed that the RTGS system for real-time fund transfer become 24X7 from December 2020.

He said the RBI stands ready to undertake further measures as necessary to assure market participants of access to liquidity and easy financial conditions.

The new housing loans risk weights to be linked to Loan-to-value ratio and also rationalize risk weights for all new housing loans until March 31, 2022.

The bank will extend the scheme for co-lending to all NBFC, HFC. As for GDP, the growth may break out of contraction and enter a positive zone by the fourth quarter of the current fiscal.