Nation First News: The Reserve Bank of India (RBI) cut the repo rate by 25 basis points on Thursday, its third reduction this year.
While addressing the media in Mumbai, RBI Governor Shaktikanta Das announced its second bi-monthly monetary policy statement for 2019-20 today.
As per the announcement, RBI’s monetary policy committee (MPC) reduced the repo rate to 5.75% from current 6% with immediate effect.
RBI also removed charges on Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) transactions; asked banks to pass on benefits.
RBI has been decided to set up a Committee involving all stakeholders, under the chairmanship of CEO Indian Banks’ Association (IBA), to examine the entire gamut of ATM charges and fees. The central bank has also changed its stance to ‘accommodative’ from ‘neutral’.
Repo rate is the interest rate at which the RBI lends short-term money to commercial banks.