LAST UPDATED: April 7, 2021, 1:53 p.m.
New Delhi (Anish Yande): The Reserve Bank of India has declared its monetary policy for April 2021. The six-member Monetary Policy Committee has retained the ‘accommodative’ policy stance for the monetary policy. RBI Governor, Shaktikanta Das, has stated that the central bank would retain the accommodative stance for sustaining the growth of the economy.
Reserve Bank of India keeps key rates unchanged:
The central bank has kept the repo rate unchanged at 4 percent for the fifth consecutive time. The repo rate is the rate at which RBI lends money to commercial banks. The reverse repo rate, which is the rate at which RBI borrows from banks, remained unchanged at 3.35 percent.
Reserve Bank of India has stated that it would allow cash withdrawals from non-bank entities, depending on whether customers are KYC compliant. The withdrawals would have limitations with cash withdrawals limited to KYC complaint customers PPIs.
PPIs would comprise of digital payment systems such as PhonePe, GPay and Paytm, and forex cards. The PPI holders would be more likely to process digital transactions than transactions through cash.
Important updates of RBI monetary policy:
RBI would be allowing RTGS and NEFT connectivity with non-bank payment system operators. The central bank would also be increasing the maximum balance per customer to Rs 2 lakh per individual. The balance has been revised from Rs 1 lakh per individual.
Centralized payment systems such as RTGS and NEFT, were restricted to only banks. The RBI has announced that it would be allowing non-bank payment systems such as card networks, White label ATM operators, and PPIs to run RTGS and NEFT payment systems.
Reserve Bank of India has stated that liquidity support of Rs 50,000 crore would be provided to financial institutions. Rs 25,000 crore of the liquidity support would be issued to National Bank for Agriculture and Rural Development and Rs 15,000 crores of the support would be reserved for the Small Industries Development Bank of India. National Housing Bank would receive liquidity support of Rs 10,000 crore.
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