Today Reserve Bank of India (RBI) has published its 4th Bi-monthly Monetary Policy Statement, 2016-17. So, today we are presenting you a short notes on Current Rates after Fourth Bi-monthly Policy 2016-17 which is very important for your upcoming banking exams. Read it carefully. The present Current Rates (Policy Rates, Reserve Ratios and Lending/Deposit Rates) are given as below:
Forth Bi-monthly Monetary Policy Statement, 2016-17
Current Rates
|
Remarks (In respect of previous Bi-monthly Policy)
|
|
|---|---|---|
Policy Rates
|
||
| Policy Repo Rate | 6.25% | Changed |
| Reverse Repo Rate | 5.75% | Changed |
| Marginal Standing Facility Rate (MSF) | 6.75% | Changed |
| Bank Rate | 6.75% | Changed |
Reserve Ratios
|
||
| Cash Reserve Ratio (CRR) | 4% | Unchanged |
| Statutory Liquidity Ratio (SLR) | 20.75% (as per RBI official website) |
Changed |
Lending / Deposit Rates
|
||
| Base Rate | 9.30% - 9.70% | |
| Savings Deposit Rate | 4.00% | |
| Term Deposit Rate > 1 Year | 7.00% - 7.30% | |
Monetary and Liquidity Measures:
On the basis of an assessment of Fourth Bi-monthly Monetary Policy Statement, 2016-17, Reserve Bank of India has decided to:
i) reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect.
ii) keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); and
iii) continue to provide liquidity as required but progressively lower the average ex ante liquidity deficit in the system from one per cent of NDTL to a position closer to neutrality.
Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.
i) reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect.
ii) keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); and
iii) continue to provide liquidity as required but progressively lower the average ex ante liquidity deficit in the system from one per cent of NDTL to a position closer to neutrality.
Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.
Note: The fifth bi-monthly monetary policy statement will be announced on December 6 and 7, 2016 and its resolution will be announced on December 7, 2016.
Thanks.
