Latest News on RBI Credit Policy 2014: No Changes in REPO Rates

The Reserve Bank of India (RBI) kept its key policy rate on hold today (03 – June 2014). RBI would not raise interest rates further as long as inflationary pressures continued to ease.

While the repo rate was maintained at 8% and reverse repo rate at 7%, the SLR was cut by 50 basis points.

List of Major changes in Credit Policy by RBI:

  1. Reduces mandatory government bond holdings 25 basis points
  2. Cuts export credit refinance to 32% of eligible export credit from 50%
  3. Special term repo of 25 basis points to offset export credit cut
  4. Price pressures to remain in May, but seasonal
  5. If economy stays on course, no need for interest rate hike
  6. To allow domestic funds in currency derivatives
  7. Lifts individual USD remittance abroad to $125,000 vs $75,000
  8. Allows all residents and non-residents except citizens of Pakistan and Bangladesh to take out Indian currency notes up to Rs. 25,000 while leaving the country.