RBI MPC Meeting: Revised GDP Growth Forecast, Reduced CRR To Collateral Free Loan Limit Hike For Farmers; Key Takeaways

 

RBI MPC Meeting: Revised GDP Growth Forecast, Reduced CRR To Collateral Free Loan Limit Hike For Farmers; Key Takeaways

RBI MPC Meeting Key takeaways: The Monetary Policy Committee of the Reserve Bank Of India decided to keep the repo rate unchanged at 6.5% for the 11th straight time.

The standing deposit facility (SDF) and marginal standing facility (MSF) rates will also remain steady at 6.25% and 6.75% respectively. The 6-member RBI’s MPC panel, headed by Governor Shakti Kanta Das, decided the above with a majority of 4:2.Besides repo rate and SDF, the committee has administrated several other monetary policy majors. Below are the key takeaways from the f Monetary Policy Meeting.RBI MPC

RBI MPC Meeting: Revised GDP Growth Forecast, Reduced CRR To Collateral Free Loan Limit Hike For Farmers; Key Takeaways

RBI Increases Collateral-Free Loan Limit For Farmers

To enhance financial support and stability to farmers, while also enabling greater credit availability in the agricultural sector. RBI Governor announced an increase in the collateral limit for agricultural loans, raising it from Rs 1.6 lakh crore to Rs 2 lakh crore per borrower.

Cash Reserve Ration Rates Cuts By 50 BPS

Shaktikanta Das announced a reduction in cash reserve ration CRR by 50 bps to 4% RBI to address liquidity concerns. The development marks the first reduction in the CRR since March 2020.

RBI Revises GDP growth forecast

RBI revised the real GDP growth projection for FY25 and reduced it to 6.6%, earlier it was at 7.2%.

New GDP Growth Projection Rate:

FY25 – 6.6% (Now), 7.2% (Earlier)
FY25 Q2 – 7.0% (Now), 7.0% (Earlier)
FY25 Q3 – 6.8% (Now), 7.4% (Earlier)
FY25 Q4 – 7.2% (Now), 7.4% (Earlier)

The RBI governor said that the new forecast rate for real GDP growth in Q1 FY26 is 6.9%, it will further increase to 7.3% in Q2 FY26.RBI MPC

RBI MPC Meeting: Revised GDP Growth Forecast, Reduced CRR To Collateral Free Loan Limit Hike For Farmers; Key Takeaways

A new benchmark for the overnight money market

The Reserve Bank Governor has proposed to introduce a new benchmark known as the “Secure Overnight Rupee Rate (SORR)”. This rate will serve as a reference for overnight money market transactions with the objective of enhancing the transparency and efficiency of the Indian financial system.

RBI to form a panel to recommend a framework for responsible and ethical use of AI

RBI Governor Shaktikanta Das announced that the Reserve Bank of India (RBI) will form an expert committee to recommend a framework for responsible and ethical use of Artificial Intelligence (AI) in the financial sector. The initiative aims to ensure that AI technologies are used in a secure and ethical manner.

RBI allows small finance banks to extend credit lines on UPI

In a move aimed at improving financial inclusion, the Reserve Bank of India (RBI) has allowed small finance banks (SFBs) to offer credit lines to their customers. The decision is expected to increase access to affordable credit for disadvantaged groups, including small businesses, micro-entrepreneurs and individuals in rural and semi-urban areas.RBI MPCFIFA Club WC Draw: Real Madrid Drawn With Al Hilal, Man City To Face Juventus

RBI MPC Meeting: Revised GDP Growth Forecast, Reduced CRR To Collateral Free Loan Limit Hike For Farmers; Key Takeaways

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