RBI: SLR by 0.50% to 22.5 % from 23 %.

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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