In line with expectations, the Reserve Bank of India (RBI) decided to keep key interest rates unchanged in its fourth bi-monthly policy review. The apex bank kept the repo rate, or the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements, left unchanged at 8 percent. Also Read - Will You Send Your Kids to School If They Reopen in October? 71% Parents Say No; Reveals Survey
The reverse repo rate, or the interest that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, has been adjusted to 7 percent. Also Read - Inspiring! Meerut Woman Who Left Home To Avoid Forced Marriage Returns As PCS Officer 7 Years Later
The Cash Reserve Ratio (CRR) is left unchanged at 4 percent. The marginal standing facility rate and the Bank Rate is also kept unchanged at 9 percent. Also Read - Before Reporting For Duty, This Bengaluru Cop Teaches Children of Migrant Workers Everyday For An Hour
The statutory liquidity ratio (SLR), the mandatory amount of bonds lenders must keep with the RBI, has been maintained to 22.0 percent of their net demand and time liabilities (NDTL).
The central bank’s action is on the expected lines as most analysts predicted a status quo, considering the macro-economic situation and current data.
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