RBI brings repo rate to nine-year low, loans likely to get cheaper
New Delhi | Jagran News Desk: The RBI on Thursday announced to reduce the repo rate by 25 basis points, bringing it down to 5.75 per cent from the current 6 per cent.
The decision, announced by RBI Governor Shaktikanta Das, was taken in the Monetary Policy committee meeting. He said that the six-member committee voted in favour of an aggressive 25 basis points reduction in the key policy rate. One basis point is a hundredth of a percentage point.
The repo rate is at its lowest since Aril, 2009. It is the rate at which commercial banks borrow from the RBI.
The RBI has also adjusted the reverse repo rate and bank rate from 6.0 per cent to 5.50 per cent respectively.
WATCH: RBI Governor Shaktikanta Das addresses the media in Mumbai https://t.co/qnYv69newC— ANI (@ANI) June 6, 2019
The RBI has decreased the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews due to the slowing economic growth and rising global uncertainty.
"RBI will not hesitate to take any measure which is required to maintain the financial stability of the system including, short-term, medium-term and long term," said RBI Governor Shaktikanta Das.
The MPC has also decided to change the stance of monetary policy from neutral to accommodative.
The RBI has also decided to do away with charges levied on RTGS and NEFT transactions, banks will be required to pass this benefit to their customers.
It has also decided to set up a Committee involving all stakeholders, under the chairmanship of CEO Indian Banks’ Association (IBA), to examine the entire gamut of ATM charges and fees. Committee to submit its recommendations within two months of its first meeting.
Posted By: Aalok Sensharma