RBI's Q2 Monetary policy review for FY 12-13

On the basis of current assessment the Reserve Bank announces the following policy measures:

Cash Reserve Ratio
reduce the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.5 per cent to 4.25 per cent of their net demand and time liabilities (NDTL) effective the fortnight beginning November 3, 2012. As as result of this reduction in the CRR, around `175 billion of primary liquidity will be injected into the banking system.

Repo Rate
. The policy repo rate under the liquidity adjustment facility (LAF) has been retained at 8.0 per cent.

Reverse Repo Rate
The reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, stands at 7.0 per cent.

Marginal Standing Facility (MSF) Rate
The Marginal Standing Facility (MSF) rate, determined with a spread of 100 basis points above the repo rate, stands at 9.0 per cent.

Bank Rate
The Bank Rate stands at 9.0 per cent.

NOTE:- The next Mid-Quarter Review of Monetary Policy for 2012-13 will be announced through a press release on Tuesday, December 18, 2012.

NOTE:- The Third Quarter Review of Monetary Policy for 2012-13 is scheduled for Tuesday, January 29, 2013.

To download RBI's Q2 Monetary policy review for FY 12-13 CLICK HERE