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6/4/21

The difficulty of the borrowers remained the same, again the repo rate was kept the same; 15,000 crore relief to tourism and hospitality sector

RBI Policy:  The difficulty of the borrowers remained the same, again the repo rate was kept the same; 15,000 crore relief to tourism and hospitality sector





The RBI had earlier on April 4 also made no change in the repo rate and reverse repo rate



The Reserve Bank of India has kept the repo rate unchanged at 4 per cent and the reverse repo rate at 3.5 per cent, while GDP growth is projected at 9.5 per cent. The bi-monthly three-day review meeting of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) ended today. The Reserve Bank has not made any change in the policy rates. RBI Governor Shaktikant Das said the monetary policy had decided not to make any change in interest rates. The RBI had earlier on April 4 also made no change in the repo rate and reverse repo rate.




This is the current rate

Repo rate 4.00%
Reverse repo rate 3.35%
Marginal Standing Facility Rate 4.25%
Bank rate 4.25%

Relief package to
tourism and hospitality sector The government has not given any relief to the tourism and hospitality sector, which has been devastated by the Corona, though the sector is now being given relief through the Reserve Bank. Announcing the monetary policy review on Friday, the Reserve Bank governor said the sector would be given relief through banks. 15,000 crore cash will be provided to banks. This will enable the bank to provide cheap loans to hotels, tour operators, restaurants, private bus operators etc.




GDP growth to be 9.5 per cent this year The
Reserve Bank estimates that GDP growth could be 9.5 per cent in FY2021-22. The figure is good, though lower than the Reserve Bank's previous estimate of 10.5 per cent. The Reserve Bank governor said the monsoon is expected to remain normal and rural demand will remain strong, leading to a good increase in GDP.




RBI to buy G-Securities on June 17 RBI
Shaktikant Das said the RBI would buy G-Securities (Government Securities) worth Rs 40,000 crore on June 17 to support the economy. G-Securities worth Rs 1.20 lakh crore will be bought in the second quarter. The RBI governor further said that India's foreign exchange reserves could cross 600 600 billion. The MPC has set a target of maintaining the annual inflation rate at 4 per cent till March 31, 2026.



No changes were made in April. The
Monetary Policy Committee panel did not make any changes in its previous meeting held in April 2021. This time too there has been no change in interest rates. This is the sixth consecutive time that the RBI has kept key rates unchanged. In 2020, the RBI cut 115 basis points.

The MPC has 6 members. The
MPC has 6 members . There are 3 government representatives. The 3 members represent the RBI, which also includes Governor Shaktikant Das.

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What are repo rate and reverse rate?
The repo rate is the rate at which loans are given to banks by the RBI. Banks lend to customers with the same loan. Lower repo rates mean that many types of bank loans will become cheaper. While the reverse repo rate is the opposite of the repo rate. The reverse rate is the rate at which interest is paid by the RBI on bank deposits. Liquidity in the markets is controlled by reverse repo rate. This means that stabilizing the repo rate means that the rate of loans from banks will also remain stable.




Positive step for home loan borrowers
Anuj Puri, chairman of property consultancy firm Enrock, says not changing interest rates is a positive step for home loan borrowers. This is especially beneficial for buyers who have taken out a loan based on an external benchmark repo rate. Currently, the retail loan rate is at a two-decade low.

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