The Reserve Bank of India (RBI) announced some important changes in its bi-monthly monetary policy review. RBI Governor Shaktikanta Das presented this review on 6 December 2024. There has been no change in the key interest rate (repo rate), which remained at 6.5 percent. However, the cash reserve ratio (CRR) has been cut. Also, the loan limit for the agricultural sector has been increased and the maximum limit of interest rate on FCNR (B) deposits has also been increased.

Key Points:

• The repo rate remains at 6.5%.
• The monetary policy stance remained neutral.
• CRR was reduced from 4.5% to 4%.
• GDP growth forecast lowered to 6.6%.
• Inflation forecast raised to 4.8%.
• The loan limit for the agriculture sector was increased to Rs 2 lakh.
• The interest rate cap on FCNR (B) deposits increased.
• Small finance banks all are owed to give loans through UPI.
• RBI will disseminate information through podcasts.
• Committee formed for responsible use of AI.