New Delhi: Moments after the Reserve Bank of India announced to cut repo rate by 50 basis points (bps) bringing it to four-year low at 6.75 per cent, the State Bank of India (SBI), one of the country’s biggest banks, on Tuesday passed on the benefit to consumers by slashing the base rate by 0.40 per cent to 9.30 per cent. The new rate will come into effect from October 5. Also Read: Rate cut no Diwali bonus, call me hawk or Santa Claus, says Raghuram Rajan | RBI cuts key rates: Home, auto loans set to get cheaper
Here are the major highlights of the fourth bi-monthly Monetary Policy Statement 2015-16, made by Reserve Bank of India Governor Raghuram Rajan:
1. Reduction of the policy repo rate (short-term lending rate to banks) under the liquidity adjustment facility (LAF) by 50 basis points from 7.25 per cent to 6.75 per cent with immediate effect.
2. No change in the cash reserve ratio (CRR) of scheduled banks from four percent of net demand and time liability (NDTL).
3. While the repurchase rate, or the interest charged on short-term borrowings, stands cut to 6.75 per cent, it will take commercial banks to lower their own lending rates for personal, automobile, housing and commercial loans to also get reduced, translating into lower EMIs.
4. The indexed reverse repo rate, or the interest payable by the central bank on short-term deposit, automatically stood reduced to 5.75 per cent.
5. No restriction on end-usage of rupee denominated bonds issued overseas, except for a small negative list.
6. Inflation is likely to go up from September for a few months as favourable base effects reverse.
7. The outlook for food inflation could improve if the increase in sown area translates into higher production.
8. Revised framework for external commercial borrowing (ECB) to replace existing rules in sync with the current economic and business environment will be issued soon.
9. New guidelines for participation of gilt account holders in the repo market to be issued by November-end.
10. Reserve Bank of India to come out with a concept paper on increasing card acceptance infrastructure and move towards less-cash society.
Your email address will not be published. Required fields are marked *
Overwhelming response to TSK25K
14th Convocation Ceremony at Symbiosis International (Deemed) University
WINNERS OF THE EIGHTH EDITION OF VODAFONE RANGASANGEET 2017 ANNOUNCED
Dress made by paper, plastic and other recycle products was highlight on 2nd day of Borivali Design Fest
Shabab Sabri recorded the romantic song on mahurat of comedy film Raju ki boli bandook ki goli at AVM Studio
2014 The Global Indian New Network (TGINN)