RBI cuts repo rate by 25 bps, third in row; also removes charges levied on RTGS, NEFT transactions

Mumbai: Reserve Bank of India (RBI) will do away with the charges levied for transactions processed in the RTGS and NEFT systems. Banks will be required to pass these benefits to their customers. Instructions to banks in this regard will be issued within a week.

The announcement was made in the Statement on Developmental and Regulatory Policies, released today as part of RBI’s monetary policy review.

RBI today also announced 25 bps rate cut, 3rd in a row and slashed repo rate to 5.75%, lowest in 9 years. With this, bank loans will get cheaper.

RBI lowered its GDP forecast to 7% from 7.2%.

RBI decided to set up a Committee to examine the ATM charges and fees. Committee will submit its recommendations within two months of its first meeting. Committee will involve all stakeholders, under the chairmanship of CEO Indian Banks’ Association (IBA).