RBI-highlights: Monetary policy review

Tags: News
Following are the highlights of RBI monetary policy review:

* Short-term lending (Repo) rate unchanged at 8 pc.

* Cash reserve ratio (CRR) too unchanged at 4 pc.

* No rate hike if inflation continues to trend lower.

* Economic growth for 2014-15 expected at 5.5 pc.

* CAD expected to come down to 2 pc of GDP in 2014-15.

* Retail inflation expected to be under 6 pc in 2014.

* RBI asks banks not to charge penalty for failure to maintain minimum balance in inoperative account.

* Approval of new bank licences after consulting EC.

* RBI open to banking mergers, provided competition and stability are not compromised.

* Industrial activity continues to be a drag on economy.

* RBI will strive to increase reach of financial services to everyone by using technology and new products.

* Stress on priority sector lending for greater financial access.

* Today's was first bi-monthly monetary policy review, next one scheduled for June 3.

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