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Repo rate remains unchanged at 4%

  • IASbaba
  • April 8, 2021
  • 0
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Repo rate remains unchanged at 4%

Part of: GS Prelims and GS – III – Economy 

In news

  • RBI’s Monetary Policy Committee (MPC) has decided to keep its repo rate unchanged at 4%, in line with market expectations.

Key takeaways 

  • RBI will maintain its ‘accommodative stance’ as long as required to sustain growth on a durable basis.
  • The RBI maintained its GDP growth forecast at 10.5% for 2021-22.
  • RBI also announced a series of measures to inject liquidity in the government securities market and the financial system.
  • It will ensure orderly conduct of government borrowing programmes. 
  • In this respect, it announced a secondary market government securities (G-sec) acquisition plan worth Rs 1 lakh crore for April-June.
  • RBI has decided to set up a committee to review the working of Asset Reconstruction Companies to ensure how better these entities can support the financial sector.
  • In the policy review, the RBI decided to extend the RTGS and NEFT payments platforms to prepaid payment instruments, white label ATMs as well.

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