The results of the three-day meeting of the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) have come. RBI Governor Shaktikanta Das has announced a monetary policy review. Let us know what the major results of the committee meeting were.
No change in interest rates: In its monetary policy review, the Reserve Bank has not made any changes in interest rates. That is, the common people have not got relief on their loan EMI. The Reserve Bank has retained the repo rate at 4% and the reverse repo rate at 3.35%.
Contactless card payment will be up to 5 thousand: RBI has said that contactless card payment will be increased from Rs 2000 to Rs 5000. This decision will be effective from 1 January 2021. At the same time, in the next few days, the facility of transferring money through RTGS will be available 24 hours.
Fast improvement in economy: Reserve Bank Governor Shaktikanta Das said that economic activities are increasing in both rural and urban areas. Some new sectors have also been added to the recovery. Urban demand has increased after the unlock. The consumer of the country is very optimistic. Adequate liquidity exists in the system. The economy has shown faster recovery than anticipated. In this financial year 2020-21, GDP growth will be 7.5%, which means it will fall. The GDP growth estimate for the next quarter is 0.1 percent. The GDP growth estimate for the fourth quarter is 0.7 percent.
Inflation will remain high: Shaktikanta Das said that the rate of inflation in the country is expected to remain high. He said that CPI-based inflation i.e., retail inflation is expected to be 6.8% in the third quarter of this financial year. At the same time, it can be 5.8% in Q4. The Reserve Bank hoped that inflation could remain between 5.2% and 4.6% in the first half of FY 2021-22.
Exempting banks from paying dividends: While announcing the monetary policy, RBI Governor Shaktikanta Das said that all commercial and cooperative banks in the country have been asked not to declare dividends for FY 2021 and finance. Keep the profits earned in the year 2020 with you. RBI has taken this decision to strengthen banks