RBI Second Bi-monthly Policy 2017-18
Reserve Bank of India (RBI) has announced its Second Bi- monthly Monetary Policy Rates for 2017-18 in Mumbai today. You can go through the details of Second Bi-monthly Monetary Statement below.
The Second Bi-monthly policy has been released based on the assessment of the Monetary Policy Committee of the Reserve Bank of India (RBI). Monetary Policy Rates are crucial for the exam, especially Banking awareness. We have started our series, 'Big Bank Theory' to help you all prepare for Banking Awareness in a better way. You can go through the remaining articles of this series from the link at the end of the post.The remaining policy statements would be released by RBI as stated below -
| Policy Statement | Dates of Release |
| First Bi-monthly Monetary Policy Statement for 2017-18 | 6th April 2017 |
| Third Bi-monthly Monetary Policy Statement for 2017-18 | 2nd August 2017 |
| Fourth Bi-monthly Monetary Policy Statement for 2017-18 | 4th October 2017 |
| Fifth Bi-monthly Monetary Policy Statement for 2017-18 | 6th December 2017 |
| Sixth Bi-monthly Monetary Policy Statement for 2017-18 | 7th February 2018 |
RBI Second Bi-Monthly Monetary Policy 2017-18 : Highlights
The Reserve Bank of India in its Second bi – monthly statement 2017-18 has made the following announcements -- Repo rate under the liquidity adjustment facility (LAF) remains unchanged at 6.25 per cent.
- The reverse repo rate under the LAF remains at 6.0 per cent.
- The marginal standing facility (MSF) rate and the Bank Rate at 6.50 per cent.
- The growth of real gross value added (GVA) for 2016-17 has been pegged at 6.6%, 0.1% point lower than the second advance estimates released in February 2017.
- As per RBI's report, The decision of the Monetary Policy Committee (MPC) is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
Repo Rate
It is the rate at which RBI lends money to commercial banks.Reverse Repo rate
It is the rate at which RBI borrows money from commercial banks.Cash Reserve Ratio (CRR)
The share of net demand and time liabilities (deposits) that banks must maintain as cash balance with the Reserve Bank.Statutory Liquidity Ratio (SLR)
The share of net demand and time liabilities (deposits) that banks must maintain in safe and liquid assets, such as, government securities, cash and gold.Bank Rate
It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers for long term.Marginal Standing Facility Rate (MSF)
The rate at which the scheduled banks can borrow funds from the RBI overnight, against the approved government securities is termed as MSF.All the best for your exams..
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