The results of the three-day meeting of the Monetary Policy Committee of RBI have come. RBI Governor Shaktikanta Das has announced a monetary policy review. Let's know what were the major results of the committee meeting:

No change in interest rates: In its monetary policy review, the Reserve Bank has not made any changes in interest rates. It means common people have not got relief on their loan EMI. The Reserve Bank has retained the repo rate at 4% and the reverse repo rate at 3.35%.

Contactless card payment will be up to 5 thousand: RBI has said that contactless card payment will be increased from Rs 2000 to Rs 5000. This decision will be determined from 1 January 2021. The facility of transferring money through RTGS will be available 24 hours in the next few days.

Fast improvement in economy: Reserve Bank Governor Shaktikanta Das said that economic activities are increasing in both rural and urban areas. Some new sectors have also been added to the recovery. Urban demand has increased after the Unlock. India's consumer is very optimistic. Adequate liquidity is present in the system. The economy has shown a faster recovery than anticipated. GDP growth will be -7.5% in this financial year 2020-21, meaning it will decrease. The GDP growth estimate for the next quarter is 0.1%. The GDP growth estimate for the fourth quarter is 0.7%.

Inflation will remain high: Shaktikanta Das said that the inflation rate in India is likely to remain high. He said CPI-based inflation means retail inflation is expected to be 6.8% in the third quarter of this financial year. It can be 5.8% in Q4. The RBI expected inflation to remain between 5.2% and 4.6% in the first half of FY 2021-22.

Exempting banks from paying dividends: While announcing the monetary policy, RBI Governor Shaktikanta Das said that all commercial and cooperative banks in India have been asked not to declare dividends for FY 2021 and keep the profits earned in FY 2020. The RBI has taken this decision to strengthen banks.

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