RBI Policy Highlights: RBI Surprises With A Rate Cut, Changes Stance To "Neutral"

Mumbai: Following are the highlights of the sixth bi-monthly monetary statement for 2018-19 by the RBI: 

* RBI cuts key lending rate (repo) by 0.25 per cent to 6.25 per cent

* Reverse repo rate cut to 6 pc, bank rate to 6.5 per cent, CRR unchanged at 4 per cent

* Headline inflation estimates revised down to 2.8 per cent in March quarter, 3.2-3.4 per cent in first half of next fiscal and 3.9 per cent in Q3 of FY'20

* Projects GDP growth to accelerate to 7.4 per cent next fiscal, from 7.2 per cent in 2018-19

*Pegs April-September growth in range of 7.2-7.4 per cent, and 7.5 per cent in Q3 of 2019-20

* Oil price outlook hazy, trade tensions to weigh on global growth prospects

* Union budget proposals to boost demand by raising disposable incomes

* To revise definition of bulk deposits as single rupee deposits of Rs 2 crore and above from Rs 1 crore currently

* To issue guidelines to harmonise major categories of NBFCs

* Proposes to set up a task force on Offshore Rupee Markets to ensure Rupee value stability

* Removes restrictions on Foreign Portfolio Investors investing in corporate debt market

* To come out with discussion paper on Payment Gateway Service Providers and Payment Aggregators

* Hikes limit of collateral-free agricultural loans to Rs 1.6 lakh from Rs 1 lakh, to help small and marginal farmers

* Constitutes Working Group to review agricultural credit

* Monetary policy committee votes 4:2 in favour of rate cut, unanimous on change in stance

* 2 MPC members Chetan Ghate and Viral Acharya were for status quo in rates

* Next meeting of the MPC from April 2-4.