Highlights: RBI Guv Raghuram Rajan keeps key policy rates unchanged, but unlocks Rs 40,000 cr of bank funds

Jun 03 2014, 12:20 IST
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Raghuram Rajan kept the country's key policy repo rate unchanged at 8 per cent. Raghuram Rajan kept the country's key policy repo rate unchanged at 8 per cent.
SummaryCash reserve ratio (CRR) unchanged at 4 per cent.

Reserve Bank of India Governor Raghuram Rajan kept the country's key policy repo rate unchanged at 8 percent on Tuesday, as widely expected, with consumer price inflation coming down this year after a series of tightening steps by the central bank.

Here are the highlights:

* Short-term lending (Repo) rate unchanged at 8 pc

* Cash reserve ratio (CRR) unchanged at 4 pc

* SLR cut by 0.50 pc to 22.5 pc to unlock banking funds

* Expect economic growth for 2014-15 to be between 5-6 pc

* Further policy tightening will not be warranted if inflation continues to decline

* Reiterates CPI inflation target of 8 pc by January 2015, 6 pc by 2016

* Decisive election results should help bring in gradual recovery of growth

* Farm sector outlook clouded by forecast of delay in monsoon

* Export credit refinance facility cut to 32 pc from 50 pc

* FPIs allowed in currency derivative market

* Indians as well as non-residents can carry up to Rs 25,000 while leaving country

* This facility not valid for citizens of Pakistan and Bangladesh

* Next bi-monthly policy statement on August 5

*Hikes eligibility limit for forex remittances to USD 1,25,000, from USD 75,000 at present.

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