Rajan's last monetary policy update | 10 Highlights

Raghuram Rajan. Photo: Reuters

New Delhi: The outgoing RBI chief, Raghuram Rajan, on Tuesday maintained status quo on key rates at his last policy review meeting, as was widely expected, but underlined that the central bank continues to be accommodative.

The overnight repo rate at which RBI lends to the system has been retained at 6.5 percent, while the reverse repo rate which is paid to banks has been maintained at 6 percent. The Cash Reserve Ratio will be at 4 percent.

Following are the highlights of RBI's third bimonthly monetary policy statement, 2016-17:

» Growth forecast at 7.6 percent for the current fiscal

» Inflation target remains 5 percent for January 2017

» Normal monsoon, 7th Pay Commission award to boost growth

» Goods and Services Tax (GST) roll out to boost business sentiment, investment

» Premature to talk about inflationary impact of GST

» Foreign Currency Non-Resident (Bank) redemptions not to disrupt liquidity in market

» Banks have passed on rate cut benefit only modestly

» FAQ on Know Your Customer (KYC) norms on RBI website for easy reference

» Marginal Cost Lending Rate framework for interest rate to be modified

» Forex reserves at $365.7 billion on August 5