Following are the highlights of the December monetary policy announced by the Reserve Bank Governor Shaktikanta Das on Friday:
Photograph: Francis Mascarenhas/Reuters
- Key interest rate (repo) kept unchanged at 6.5%
- RBI continues with 'neutral' monetary policy stance
- Cash Reserve Ratio (CRR) reduced to 4% from 4.5%, to unlock Rs 1.16 lakh crore of bank funds
- RBI sharply lowers GDP growth forecast for FY25 to 6.6% from 7.2%
- Inflation projection for FY25 raised to 4.8% from 4.5%
- Collateral-free loan for agriculture sector raised to Rs 2 lakh per borrower from Rs 1.6 lakh
- Interest rate ceiling on FCNR (B) deposits raised
- Small finance banks permitted to extend pre-sanctioned credit lines through UPI
- RBI to launch podcasts for wider dissemination of information to general public
- RBI to set up an expert panel to develop a framework for responsible, ethical use of AI in the financial sector
- Next monetary policy meeting scheduled for February 5-7, 2025.
