Rs 5,000 crore additional liquidity facility to be provided by the National Housing Bank to boost liquidity in housing sector, the RBI said.
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The Reserve Bank of India (RBI) on Thursday kept interest rates unchanged to help tame inflation that in recent times had surged past 6 per cent mark, and said that the economy is in an extremely weak condition following the pandemic.
Following are the highlights of the monetary policy:
- Policy rate unchanged at 4 per cent, reverse repo at 3.35 per cent
- Loans against gold enhanced to 90 per cent of the value from current 75 per cent to mitigate COVID-19 impact on households
- To continue with the accommodative stance to revive growth
- Supporting economic recovery assumes primacy in the conduct of monetary policy in uncertain global environment
- Sees upside risk to inflation, projects moderation in October-March
- GDP growth to be negative in current fiscal
- Stressed MSME borrowers eligible for loan restructuring if their accounts were classified standard
- Allows lenders to provide window to restructure loans of corporate, individual borrowers to ease COVID-19 impact
- A new resolution window for corporate and personal loans to be framed
- To put in place safeguards for opening of current accounts and overdraft accounts for customers availing credit facilities from multiple banks
- Priority Sector Lending (PSL) to include start-ups
- Increased limits for renewable energy, including solar power, and small and marginal farmers and 'Weaker Sections' under PSL
- To allow a pilot scheme for small value payments in offline mode while safeguarding interest of users, liability protection
- Proposes Online Dispute Resolution (ODR) for digital payments
- Rs 5,000 crore additional liquidity facility to be provided by the National Housing Bank (NHB) to boost liquidity in housing sector
- Rs 5,000 crore liquidity support to NABARD to aid agri sector
- Economic activity had started to recover, but surge in infection has forced imposition of lockdowns
- Monetary Policy Committee conscious of primary mandate to achieve inflation target of 4 per cent within a band of +/- 2 per cent
Photograph: Shailesh Andrade/Reuters
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