Reserve Bank of India
(RBI) kept its benchmark interest rates unchanged (Repo at 8 % & Reverse
Repo at 7 %). But cut the SLR (Statutory Liquidity Ratio - mandated investments
in government securities) by 0.50% to
22.5 % from 23 %.
This move is expected
to release nearly Rs.40,000 crore from the money invested in the government
securities into the system - this measure is positive for the banking sector as
the same could be made available for lending to the corporate sector, if
needed.
The other major measures
which would have significant bearing on the economy are: cutting export credit
refinance to 32 % from 50 % and increasing the forex remittance for Indians to
$ 1.25 lakh from $ 75,000.
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