RBI monetary policy highlights

Following are the highlights of RBI’s third monetary policy review of the current financial year announced by Governor Shaktikanta Das on Wednesday

* Key lending rate (repo) raised by 50 basis points to 4.9 per cent; 2nd increase in 5 weeks

* Repo rate still remains below pre-pandemic level

* To focus on withdrawal of accommodative policy to tame inflation and support growth

* Inflation projection for current fiscal raised to 6.7 pc from 5.7 pc

* Edible oil prices remain under pressure on adverse global supply conditions, notwithstanding some recent correction

* Tense global situation imparts considerable uncertainty to domestic inflation outlook

* GDP growth forecast retained at 7.2 pc for current financial year

* Economic activity gathering strength; normal monsoon to boost rural consumption

* Credit cards to be linked with UPI; RuPay credit cards to be linked first

* Lending limits for housing loans by co-op banks doubled

* Rural co-op banks permitted to lend to commercial Real Estate – Residential Housing (CRE-RH) sector

* Urban Co-op banks allowed to offer door-step banking

* e-mandates on cards for recurring payments enhanced to Rs 15,000 from Rs 5,000.