Hello my dear future bankers! We know that SBI clerical cadre exam hasn’t been scheduled from the last and this week. The next phase of exam will start from 16th of august and will end on 31st. People who have exam on 16th must be revising at full force. The level of the exam is increasing day by day and you have to put some more extra efforts so that you can write your exam without any hiccups and settle in a job you are fond of. The Reserve Bank of India, apex court of the country, has released its third Bi-monthly monetary policy review on 5th August, 2014. The second bi-monthly policy was released on 3rd June, 2014. Here are the highlights of the 3rd bi-monthly review:
The RBI has kept the policy repo rate unchanged and steady for the third time in a row. Instead, there will be cut in the portion of deposits that bank must hold in government securities by 50 basis points to increase the money in the banking system. The governor of RBI, Raghuram G Rajan, had released the policy review statement at the RBI on Tuesday. The Guv also hinted that for now there will be no decrease in the loan rates and it can be expected next year only. Raghuram Rajan, after taking oath as the governor of RBI in September, 2013, have decreased the Statutory Liquidity Ratio (SLR) for the second time to 22%, which will be effective from the begin of the next fortnight i.e., from 9th August, 2014. The SLR to be (22%) is the lowest SLR our country has seen since Independence.
Let us have a look at what the Governor of the RBI had to say on different issues which are hot cakes now:
On inflation: The RBI Guv is keen at decreasing the inflation rates. They have estimated the inflation to be at or below 8% by January 2015 and are keen to bring it down further to 6% by January 2016. Though RBI hasn’t altered the rates, Rajan has pointed that if there will be a situation to cut them, will definitely proceed to alter them.
On improving fundamentals: The RBI has pegged the GDP growth rate for the current fiscal at 5.5%, which is in the range of the projected rate 5-6% in April. The governor has also pointed that, there is a significant decrease in the Current Account Deficit (CAD), which was 4.5% of GDP in May, last year to 1.5-2% of GDP today. And have also stated that, they will be revising at the gold imports and exports once to still reduce the CAD. Rajan had also said that the reserves have increased substantially than before and will increase further in the coming future.
HIGHLIGHTS OF THE MONETARY & LIQUIDITY MEASURES:
- The policy repo rate under the Liquid Adjustment facility (LAF) is kept unchanged at 8%
- Cash Reserve Ratio (CRR) of the scheduled banks is kept unchanged at 4% of the net demands and time liabilities
- No change to provide liquidity under overnight repos at 0.25% of bank-wise NDTL and liquidity under 7-day and 14-day of up to 0.75% of NDTL of the banking system
- Reduce the statutory Liquidity Ratio (SLR) of scheduled commercial banks by 50 basis points from 22.5% to 22% of their NDTL with effect from the fortnight beginning August 9, 2014
BANK RATE
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9%
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Repo Rate
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8%
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Reverse Repo Rate
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7%
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Cash Reserve Ratio (CRR)
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4%
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Statutory Liquidity Ratio (SLR)
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22% (from August 9th)
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Marginal Standing Facility (MSF)
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9%
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