In a bid to ensure cheaper availability of credit, the Reserve Bank of India (RBI) has cut both the repo and reverse repo rates by 25 basis points, with the rates now standing at 5.75 and 5.50 per cent respectively, reports The New Indian Express.
Moreover, the RBI has also moved towards a rate easing cycle, shifting its stance to accommodative, which entails more rate cuts in the near future.
The central bank has also established a committee to scrutinise ATM charges and other banking fees. In what will be a further boost to financial transactions, the apex bank has decided to do away with RTGS and NEFT charges.
The RBI is in a position with liberty to slash rates considering that retail inflation remains at 3.9 per cent, within the government’s target rate of 4 per cent. The rate cuts should likely benefit consumers and businesses by way of cheaper access to lending by banks and other financial institutions.
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