Highlights of RBI's monetary policy 2013-14
Posted on: 12:38 PM IST May 03, 2013
Mumbai: Sticking to its cautious stance, the Reserve Bank on Friday cut the key interest rate by just 0.25 per cent to 7.25 per cent and kept the liquidity enhancing cash reserve requirement unchanged, disappointing the industry and stock market.
The RBI in its annual monetary policy statement said there would be modest improvement in the country's economic growth to 5.7 per cent in the current fiscal, as against the decade's low of 5 per cent in 2012-13.
Following are the highlights of the RBI's annual monetary policy 2013-14:
Key short-term lending rate (repo) cut by 0.25 per cent to 7.25 per cent.
Cash reserve ratio kept unchanged at 4 per cent.
RBI says assessment of growth-inflation dynamics limits scope for further easing of policy rate.
FY14 GDP growth pegged at 5.7 per cent, down from government's estimates.
Inflation to remain range-bound around 5.5 pc in Financial Year 2013-14.
CAD is the biggest risk to the economy.
RBI proposes doubling of limits on priority sector lending to MSMEs to Rs 5 crore.
Banks asked to stop differential treatment to home-branch and non-home branch customers.
RBI says probe into Cobrapost's sting operation calls for a better regulatory compliance by banks.
Banks not carrying out customer due diligence as required while marketing and distributing third-party products.
RBI proposes restricting gold imports only to meet genuine needs of exporters of gold jewellery.
Banks asked to set up mechanism to monitor and review implementation of Direct Benefit Transfer.
Mid-quarter review of policy on June 17.