RBI keeps repo & reverse repo rate unaltered at 4% & 3.35%

The Reserve Bank of India’s Monetary Policy Committee (MPC) has kept repo rate unaltered at 4 percent, it has maintained an ‘accommodative’ stance.

RBI Governor Shaktikanta Das said, the board unanimously voted to hold the rate balanced. However, various analysts had expected the monetary policy committee to retain the rates this week after the three-day meeting (December 2-4).


During the course of monetary policy, the deciding factors are inflation and growth. The rating panel observes a view looking at the growth-inflation dynamics. Easily, higher inflation warrants guarantee a tighter monetary policy, which ultimately declines economic growth calls for lower interest rates.

ShaktiKanta Das said to Bloomberg Quint, “The growth impulses that have emerged augur well for the revitalization of the Indian Economy. Policy stimuli by the government and RBI are intended to nurture these growth sprouts to greater strength. Efforts are underway to ensure a calibrated unlocking of the economy with cognizance and caution about the virus. While we remain vigilant, we must now turn to alleviate the scars left by the pandemic and revive the economy. The horizon has lighted up with a spate of positive news around vaccine and a steady rise in recoveries.”

RTGS facilities will be operational 24×7, thus settlement of AMPS, NFS, Rupay, and UPI transactions will be allowed all days of the week against the earlier five days of the week. NBFC will have a cap for declaration of dividends and their regulatory regime will be reviewed through a scale-based approach.