- The Monetary Policy Committee (MPC) evaluated domestic and global macroeconomic and financial conditions and thus has kept the repo rate under the Liquidity Adjustment Facility (LAF) unchanged to 4%.
- The reverse repo rate under LAF is also kept unchanged to 3.35%.
- There is also no change in the Marginal Standing Facility (MSF) and Bank Rate which are at 4.25%.
- Another announcement includes that RBI will introduce on-tap Targeted Long Term Repo Operations (TLTRO) for the banks to borrow upto Rs 1 trillion from the window and invest in corporate bonds or debt instruments. The on-tap TLTRO will have tenors of upto 3 years at a floating rate linked to the policy repo rate. The on-tap TLTRO scheme will be available upto 3rd March 2021.
- The committee has predicted real GDP growth for FY 2021 to contract by 9.5%.
- Static Part:
- HQ of RBI: Mumbai
- Composition of MPC: Shaktikanta Das (Governor of RBI), Dr Michael Debabrata (Deputy Governor of RBI), Dr Mridul K. Saggar, Prof. Ashima Goyal, Prof Jayanth R Varma and Dr Shashanka Bhide
Question:
Q.1 As per RBI’s 3rd Bi-Monthly Monetary Policy Statement for 2020-21, reverse repo rate under LAF is at ____%?
a. 4.35%
b. 3.35%
c. 3.75%
d. 4.75%
a. 4.35%
b. 3.35%
c. 3.75%
d. 4.75%
