Reserve Bank of India (RBI) has released the Seventh Bi-monthly Monetary Policy Statement, 2019-20 Resolution of the Monetary Policy Committee (MPC), RBIunder which MPC has decided rate changes with immediate effect due to the current and evolving macroeconomic situation impacted by COVID-19. The meet was scheduled for 31st March, 1st and 3rd April 2020 but they advanced its meeting on 24th, 26thand 27th Following table showing the policy rate changed in 7th Bi-monthly Monetary Policy Policy rate New Rate Previous Rate Change in Basis points (bps) Policy Repo Rate 4.40 % 5.15% 75 Reverse Repo Rate 4% 4.90% 90 Marginal Standing Facility Rate 4.65% 5.40% 25 Bank Rate 4.65% 5.40% 25 CRR 4% 4% 100 Static Points: Repo Rate: It is the rate at which RBI lends money to commercial banks. Reverse Repo rate: It is the rate at which RBI borrows money from commercial banks. Cash Reserve Ratio (CRR): The share of net demand and time liabilities (deposits) that banks must maintain a cash balance with the RBI. Statutory Liquidity Ratio (SLR): The share of net demand and time liabilities (deposits) that banks must maintain in safe and liquid assets, such as government securities, cash, and gold. Bank Rate: It is the rate at which the RBI is ready to buy or rediscount bills of exchange or other commercial papers for the long term. Marginal Standing Facility Rate (MSF): The rate at which the scheduled banks can borrow funds from the RBI overnight, against the approved government securities is termed as MSF.
