Monetary Policy: Short Term Lending Rate Or The Repo Rate Unchanged:
The Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to keep its short-term lending rate or the repo rate unchanged at 4 percent, in line with market expectations.
- Announcing the monetary policy, RBI Governor said the central bank will maintain its ‘accommodative stance’ as long as required to sustain growth on a durable basis.
- The RBI maintained its GDP growth forecast at 10.5 percent for 2021-22.
- RBI also announced a series of measures to inject liquidity in the government securities market and the financial system.
- RBI will ensure the orderly conduct of government borrowing programs.
- In this respect, the central bank announced a secondary market government securities (G-sec) acquisition plan worth Rs 1 lakh crore for April-June.
- Amid the government plans to support a new asset reconstruction company being set up by banks, the RBI has decided to set up a committee to review the working of ARCs to ensure how better these entities can support the financial sector.
- In the policy review, the RBI decided to extend the RTGS and NEFT payments platforms to prepaid payment instruments, white label ATMs as well.