Taken from http://currentaffairs-businessnews.com/2014/08/05/rbi-keeps-repo-rate-unchanged-at-8-slr-cut-by-50-bps-to-boost-credit-2/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CurrentAffairsBusinessNews+%28Current+Affairs+Business+News%29
The RBI Governor Dr Raghuram Rajan kept key policy rates unchanged today in his third bi-monthly monetary policy review. Repo rate, the rate at which RBI lends money to banks for the short term, was kept unchanged at 8% while the Reverse Repo Rate, the rate at which RBI borrows money from banks, was kept unchanged at 7%. The cash reserve ratio for banks has been kept unchanged at 4%. The reverse repo rate under the LAF will remain unchanged at 7% and the marginal standing facility (MSF) rate and the Bank Rate have been kept unchanged at 9%. The RBI has decided to reduce the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.5% to 22% of their net demand and time liabilities (NDTL) with effect from the fortnight beginning August 9, 2014. Statutory liquidity ratio (SLR) refers amount that the commercial banks require to maintain with the RBI in the form of gold or government approved securities (G-Secs or bonds) before lending. This move will give banks more freedom to increase credit or loan to non-government sectors which will help to improve economic activity. The RBI has projected India's GDP growth for the current financial year at 5.5% from earlier GDP growth of 4.7% in the previous financial year. The improvement in growth is due to improve investment sentiment and improved economic activity under the newly elected NDA government. Register at the dedicated AccessIndia list for discussing accessibility of mobile phones / Tabs on: http://mail.accessindia.org.in/mailman/listinfo/mobile.accessindia_accessindia.org.in Search for old postings at: http://www.mail-archive.com/accessindia@accessindia.org.in/ To unsubscribe send a message to accessindia-requ...@accessindia.org.in with the subject unsubscribe. To change your subscription to digest mode or make any other changes, please visit the list home page at http://accessindia.org.in/mailman/listinfo/accessindia_accessindia.org.in Disclaimer: 1. Contents of the mails, factual, or otherwise, reflect the thinking of the person sending the mail and AI in no way relates itself to its veracity; 2. AI cannot be held liable for any commission/omission based on the mails sent through this mailing list..
