RBI cuts repo rate by 25 basis points, policy stance now ‘accommodative’
The Reserve Bank of India (RBI) cut key interest rate by 25 basis points. RBI’s monetary policy committee (MPC) reduced the repo rate to 5.75% from 6%. Repo rate is the rate at which the apex bank lends short-term money to commercial banks. The move comes two weeks after the BJP led NDA came to power. Reserve Bank of India Monetary Policy Committee has decided to do away with charges levied on RTGS and NEFT transactions, the netbanking facilities that allow individuals, companies and firms to transfer funds from one bank to another.