The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has voted by a 4:2 majority to keep the policy repo rate unchanged at 6.5% for eight consecutive times. This information was provided by the RBI Governor Shaktikanta Das on 7 June 2024 while announcing the second bi-monthly monetary policy of the financial year 2024-25.
The second bi-monthly Monetary Policy Committee meeting of fiscal year 2024-25 was held on June 5 to 7, 2024. The next meeting of the MPC is scheduled for 6-8 August 2024. The MPC is mandated to meet at least four times in a financial year, which runs from 1 April to 31 March.
The RBI has not changed its rates or reserve ratios. However, the Reserve Bank of India has increased the expected growth rate for the Indian economy in 2024-25 to 7.2 per cent.
In the first bi-monthly monetary policy of 2024-25, the RBI forecasted a growth rate of 7 per cent.
Rates and Ratios after the 2nd bi-monthly monetary policy 2024-25
Policy Repo Rate |
6.5% |
Fixed Reverse Repo Rate |
3.35% |
Bank Rate |
6.5% |
Standing Deposit Facility(SDF) |
6.25% |
Marginal Standing Facility(MSF) |
6.75% |
Cash Reserve Ratio(CRR) |
4.50% |
Statutory Liquidity Ratio(SLR) |
18% |
The RBI has increased the expected growth rate of India on the back of a higher than expected Q4 2023-24 GDP growth rate of 7.8 per cent.
The Indian economy grew by 8.2 per cent in 2023-24.
RBI expects the GDP growth for 2024-25 to be 7.2%.
According to the RBI, the expected growth rate of the Indian economy in the 2024-25 financial year quarters is as follows:
Quarter of Financial Year 2024-25 |
Growth Rate |
Q1(April - June 2024) |
7.3 % |
Q2(July to November 2024) |
7.2% |
Q3 (October -December 2024) |
7.3% |
Q4 (January 2025- March 2025) |
7.2 % |
The RBI governor also announced certain initiatives for the banking sector.
Bulk term Deposits for Banks raised
Banks in India can offer higher interest rates on bulk term deposits. Term deposits refer to Fixed deposits and recurring deposits. Banks offer bulk deposit facilities only for fixed deposits and not for recurring deposits.
Committee on Digital Payments Intelligence Platform