RBI Monetary Policy Statement Highlights: Repo Rate Cut, GDP Estimate Revised; Levies on RTGS & NEFT Scrapped
File image of the Reserve Bank of India | (Photo Credits: PTI)

Mumbai, Jun 6: Following are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday. RBI Cuts Repo Rate For 3rd Consecutive Time Bringing It Down From 6% to 5.75%; Home Loans & EMIs Likely to Turn Cheaper.

* Repo rate reduced by 25 bps to 5.75 pc for third time in a row

* Reverse repo rate now stands at 5.50 pc, marginal standing facility (MSF) rate 6 pc

* RBI changes policy stance to accommodative from neutral

* Cuts GDP growth forecast to 7pc from 7.2 pc for FY20

* Raises retail inflation forecast for Apr-Sept to 3-3.1 pc and 3.4-3.7 pc in

Oct-Mar

* Projects upward bias in food inflation in near term due to rising prices of food items

* Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario

* Waives RTGS and NEFT charges to promote digital transactions. NEFT And RTGS Transaction Charges Waived Off by RBI.

* Sets up a panel to review ATM charges, fees levied by banks

* To issue draft guidelines for 'on tap' licensing of small finance banks by Aug

* Flags sharp slowdown in investments, moderation in private consumption growth as concern

* All six MPC members voted in favour of 0.25 pc policy rate cut

* Average daily surplus liquidity in the system at Rs 66,000 crore in early June *

Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019

* Next monetary policy statement on August 7.