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RBI Monetary Policy 2024-25:Repo Rate unchanged, Economy to grow by 7%

Utkarsh Classes Last Updated 05-04-2024
RBI Monetary Policy 2024-25:Repo Rate unchanged, Economy to grow by 7% Banking and Finance 9 min read

The Reserve Bank of India (RBI) governor, Shaktikanta Das, led RBI Monetary Policy Committee, has kept the key repo rate unchanged at 6.5% for the seventh consecutive time. Announcing this on 5 April 2024, the RBI governor said that the Indian economy will likely grow by 7% in FY 25(2024-25), and the Consumer Price Index(CPI) inflation is expected to be 4.5%. The Governor said that inflation is almost under control in India, and the RBI will follow an accommodative policy to pursue growth.

The first bi-monthly Monetary Policy Committee meeting of fiscal year 2024-25 was held on April 3, 4, and 5, 2024. The next meeting of the MPC is scheduled for June 5 to 7, 2024

Policy Rates and Reserve Ratios 

The Reserve Bank of India has made no change in its Policy rates and Reserve Ratios.

Policy Rates  

 Policy Repo Rate 

  • The policy repo rate, also called the overnight lending rate, remained unchanged at 6.5%. It is the rate at which the RBI provides loans to banks for 24 hours.

 Fixed Reverse Repo Rate 

  • There was no change in the fixed reverse repo rate, which is 3.35 %.
  • In Reverse repo, the commercial banks deposit their excess liquidity with RBI for a short-term period.

Standing Deposit Facility(SDF)

  • The Standing Deposit Facility(SDF) is unchanged at 6.25%.  
  • The interest rate on SDF is always 0. 25 % below the policy repo rate.

Marginal Standing Facility(MSF)

  • The marginal standing facility is unchanged at 6.75%
  • MSF is an emergency credit facility of RBI for banks where there is a shortage of liquidity in the market. RBI provides short-term loans to banks similar to repo lending. However, RBI provides loans in MSF at a rate that is always 0.25% above the policy repo rate.

Bank Rate 

  • The bank rate is unchanged at 6.75%. 
  • The bank rate is the rate at which RBI  discounts the bills of exchange issued by the banks. 
  • RBI always keeps the Bank rate and marginal standing facility the same.

Reserve Ratios

Cash Reserve Ratio(CRR)

  • There has been no change in the  Cash Reserve Ratio(CRR). It is 4.50%.
  •  Banks have to keep a certain percentage of their Net Time and Demand Deposit Liabilities (NDTL) with the RBI in cash, called CRR.

Statutory Liquidity Ratio(SLR)

  • There has been no change in Statutory Liquidity Ratio(SLR). It is 18%
  • Banks have to keep a certain percentage of their Net Time and Demand Deposit Liabilities (NDTL) with themselves in the form of cash, gold or approved government securities called SLR.

Rates and Ratios at a glance 

Policy Repo Rate 


Fixed Reverse Repo Rate


Bank Rate 


Standing Deposit Facility(SDF)


Marginal Standing Facility(MSF)


Cash Reserve Ratio(CRR)


Statutory Liquidity Ratio(SLR)


GDP growth forecast for 2024-25  

 RBI expects the real GDP growth for 2024-25  to be 7%

The quarter-wise expected growth rate for 2024-25

  •  Q1(April to June 2024) at 7.1 percent;
  •  Q2(July to September 2024) at 6.9 percent; 
  • Q3(October  -December 2024 ) at 7.0  percent; and
  •  Q4(January-March 2025) at 7.0 percent.

In 2021-22, the Indian Gross Domestic Product Growth (GDP) rate was  9.7.

In 2022-23, the GDP grew by 7.0 per cent.

In 2023-24, the GDP is expected to grow by 7.6%. 

Other Policy Initiatives Announced by the RBI Governor 

The RBI governor also announced certain other measures during his press conference. 

  • RBI will allow trading of Sovereign Green Bonds in the International Financial Service Center(IFSC) at Gift City in Gujarat.

Sovereign Bonds are central government securities issued by the RBI on behalf of the government. The money raised through the bond will be used to finance green projects(which are less or non-polluting) . The bond funds will be used to finance green projects for public sector enterprises. The first bond was issued in January 2023.

  • Mobile app for RBI Direct Retail Scheme 

RBI will soon launch a mobile app for investors to access the retail direct portal. In 2021, RBI allowed individual investors to invest in the G-sec market (both primary and secondary). However, the investors first have to open a Gilt Securities account, namely a Retail Direct Gilt (RDG) account, with the RBI.

  • RBI will review the banks' Liquidity Coverage Framework requirements.
  • RBI has allowed the Small Finance Banks to use permissible rupee interest derivative products.
  • RBI will allow the use of the Unified Payment Interface (UPI) to deposit cash in the banks' Cash Deposits Machines.
  • RBI has allowed the use of third-party UPI apps to make UPI payments from PPI (Prepaid Payment Instruments)wallets.  

Monetary Policy Committee 

  • The Central government, under Section 45ZB of the amended RBI Act 1934, has the power to constitute a six-member Monetary Policy Committee (MPC) to determine the policy interest rate required to achieve the inflation target. 
  • The first Monetary Policy Committee was constituted by the central government on September 29, 2016.
  • Currently, the 6 members of the Monetary Policy Committee are Shaktikanta Das (Governor of RBI), Michael Debabrata Patra (Deputy Governor of RBI), Dr Mridul K. Saggar, Prof. Jayanth R. Verma, Dr. Shashanka Bhide, Dr. Ashima Goyal. All four are economists.
  • According to the provision of the  RBI Act 1934, the MPC must meet a minimum of four times in a financial year.


Answer: 6.5%


Answer:4.5 %


Answer: RBI Governor, Shaktikanta Das
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