Decisions of the RBI Monetary Review Meeting : Repo rate 4%, reverse repo rate 3.35%, Policy rates were kept unchanged, Liquidity of Rs 10,000 crore to NABARD, NHB, EMI rates remain unchanged.
The RBI has not made any change in policy rates. So NABARD-NHB has been given an additional liquidity facility of Rs 10,000 crore. The prospect of negative growth this year has also been expressed.
Following the monetary policy review meeting, the RBI has announced a repo rate of 4% and a reverse repo rate of 3.3 %. As long as the repo rate remains the same, there will be no change in EMI or loan interest rates. Credit growth is at 6 percent, the lowest level in six decades.
The global economy is still weak, the RBI said. However, foreign exchange reserves continue to rise. Retail inflation is under control. Inflation is likely to decline in the second bi-monthly period. The Reserve Bank has set an inflation target of 4%. There is a possibility of a 2% decline.
The RBI has focused more on financial stability. Reports have been reduced by 1.15% since February 2020. India’s economy is now back on track after the Corona epidemic. But the GDP growth rate for the financial year 2020-21 will be negative.
NABARD and National Housing Bank will be given a special additional liquidity facility of Rs 10,000 crore. A special window will be made available for the restructuring of some loans. Apart from this, by March 31, 2021, gold lending banks will be able to lend up to 90%.