Latest RBI Repo Rate Notification 2024
The Governor of the Reserve Bank of India, Shri Shaktikanta Das has announced that the Policy Repo Rate will remain unchanged at 4% and that the Marginal Standing Facility and Bank Rate will remain at 4.25%.
The Reverse Repo Rate too will remain unchanged at 3.35%. He informed that Monetary Policy Committee was of the view that policy support from all sides is required to gain growth momentum and to nurture recovery after it takes root.
“Hence policy rate has been left unchanged and accommodation stance has been decided to be continued as long as necessary to revive and sustain growth while ensuring inflation remains within target,” the Governor said while delivering RBI’s bi-monthly monetary policy statement through an online address.
Notification – RBI Repo Rate 2023
The Governor informed that according to RBI, Real GDP growth is projected to grow at 9.5% in 2021-22. Explaining the basis for this, he noted that, unlike the first wave, the impact on economic activity is expected to be relatively contained in the second wave, with restrictions on mobility being regionalized and nuanced.
The Governor also announced a set of additional measures with the objective of reviving the economy and mitigating the adverse impact of the second wave of the COVID-19 pandemic.
- On-Tap Liquidity Window for Contact-Intensive sectors: A separate liquidity window of Rs. 15,000 Crore is being opened till March 31, 2022, with tenures up to three years, at the repo rate.
Under this scheme, Banks can give fresh lending support to hotels, restaurants, travel agents, tour operators, aviation ancillary services, and other services including private bus operators, rent-a-car service providers, event organizers, spa clinics, beauty parlors, and saloons.
- Special Liquidity Facility of Rs. 16,000 Crore to SIDBI, for on-lending / refinancing through novel models and structures at Repo Rate, for a period of up to one year. This is to further support the credit requirements of MSMEs, including those in credit-deficient and aspirational districts.
- Expansion of coverage of borrowers under Stress Resolution Framework 2.0, by enhancing maximum aggregate exposure threshold from Rs. 25 Crore to Rs. 50 Crore for MSMEs, non-MSME small businesses, and loans to individuals for business purposes.
- Permission given to Authorized Dealer banks to place margins on behalf of FPI clients for transactions in Govt. securities within banks’ credit risk management framework. This will ease operational constraints faced by Foreign Portfolio Investments and promote ease of doing business.
- Regional Rural Banks can now issue Certificates of Deposit (CDs)
Further, all issuers of CDs will be permitted to buy back their CDs before maturity, subject to certain conditions. This will facilitate greater flexibility in liquidity management.
- National Automated Clearing House (NACH) to be available on all days of the week (currently available only on bank working days), effective from August 1, 2021. NACH is a popular and prominent mode of direct benefit transfer to numerous beneficiaries, this measure will enhance customer convenience.
RBI Repo Rate Latest Notification
PDF of RBI Repo Rate Notification issued by the RBI from its official website, and it can be directly downloaded from the link given below.
