RBI kept the Repo unchanged, contact less transactions increased to 5000

RBI kept the Repo unchanged

In a policy briefing, RBI kept the repo rate unchanged at 4%. The repo rate is the rate of lending by RBI to banks. It is in a downward cycle for a long. It means the loans are available at very fewer interest rates.  During the Corona pandemic, the interest rates were reduced considerably. In this meeting, it is kept unchanged.

Related Topic:
Long Form Audit Report (LFAR) – Review: RBI

MSF rate and the bank rate remain unchanged at 4.5%.

Reverse Repo is unchanged at 3.35%

Other important decisions related to banking-

• Apart from this, the RTGS will be available 24*7. This will be implemented soon by the banks.
• The contact fewer transactions limit is increased from rs. 2000 to rs. 5000.

Economy and growth-

The economy has seen a slight recovery from the Lockdown situation. The growth for Q3 and Q 4 is recorded at 0.1 and 0.7% respectively. The projected GDP growth for year 21 is upgraded to -7.5% from -9.5% levels projected earlier.