Wednesday 7th February 2018: The Monitory Policy Committee (MPC) of Reserve Bank of India in its sixth Bi-Monthly Statement for 2017-18 kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.0 per cent. The MPC reiterated that its commitment to keep headline inflation close to 4 per cent
The policy key rates at present are as under.
|CRR (Cash Reserve Ratio)||4.00%|
|SLR (Statutory Liquidity Ratio)
With effect from 14.10.2017
|Reverse Repo Rate||5.75%|
|MSF Rate (Marginal Standing Facility Rate)||6.25%|
As per present rule, banks are permitted to exceed the limit of 25% in totla investments under HTM category subject to excess investments comprise of SLR securities and total SLR securities held under HTM category are not more than 20.5% of NDTL. In order to align the SLR holdings under HTM category with mandatory SLR, the Apex bank has reduced the HTM category ceiling from 20.5% to 19.5% in a phased manner, i.e. 20 per cent by December 31, 2017 and 19.5 per cent by March 31, 2018.
The MPC in its assessment observed that the economy is on a recovery path, including early signs of a revival of investment activity.