Following are the highlights of RBI’s bi-monthly monetary policy statement:
Short-term lending rate unchanged at 7.75%
Cash reserveratio unchanged at 4%
Statutory liquidity ratio cut to 21.5%, effective February 7, to unlock banking funds
Current Account Deficit at 1.3% of GDP for 2014-15
Inflation target at 6% by January 2016
GDP growth estimates under old base for current fiscal at 5.5%; 6.5% for 2015-16
Banks asked to lend to productive sector to spur investment, growth
Limit of foreign exchange remittance doubled to $2,50,000 per person annually
72 applications for small finance banks, 41 for payments banks received
Export credit refinance to be replaced with provision of system level liquidity, effective February 7
Foreign portfolio investors allowed to re-invest in G-Secs after their investment limits are utilised
Bi-monthly policy statement for 2015-16 on April 7.
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