Login With Google
Easing Measures of RBI
Why is it in the news?
- RBI took two measures that could ease lending rates in its Monetary Policy Committee meeting.
More in the news
- Lending to Commercial Banks:
(1) RBI opened a window to extend ₹1 lakh crore to the commercial banks at the repo rate, which is 5.15%.
- CRR Exemption:
(1) Banks have been exempted from maintaining the cash reserve ratio — which is 4% of the net demand and time liabilities now for home, auto and MSME loans that are extended from January 31 to July 31.
(2) CRR exemption for incremental lending to auto, housing and MSMEs is a good way to channelise credit to areas where demand has not met commensurate supply.
Source
The Hindu.