RBI announced Third bi-monthly monetary policy 2016-17

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Mumbai headquartered Reserve Bank of India announced Third Bi-Monthly Monetary policy for the year financial year 2016-17 and keeping unchanged the Policy rates and Reserve ratios.

Monetary and Liquidity Measures:

On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to:

  • Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent;
  • Keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); and
  • Continue to provide liquidity as required but progressively lower the average ex ante liquidity deficit in the system from one per cent of NDTL to a position closer to neutrality.
  • Consequently, the reverse repo rate under the LAF will remain unchanged at 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.0 per cent.
The present Current Rates (Policy Rates, Reserve Ratios and Lending/Deposit Rates) are given as below:
Current Rates
Remarks (In respect of previous Bi-monthly Policy)
Policy Rates
Policy Repo Rate6.50%Unchanged
Reverse Repo Rate6.00%Unchanged
Marginal Standing Facility Rate (MSF)7.00%Unchanged
Bank Rate7.00%
Reserve Ratios
Cash Reserve Ratio (CRR)4%Unchanged
Statutory Liquidity Ratio (SLR)21.25%Unchanged
Lending / Deposit Rates
Base Rate9.30% – 9.70%
Savings Deposit Rate4.00%
Term Deposit Rate > 1 Year7.00% – 7.50%

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