April 8, 2021

The Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to keep its short term lending rate or the repo rate unchanged at 4 per cent, in line with market expectations.


  • Announcing the monetary policy, RBI Governor said the central bank will maintain its ‘accommodative stance’ as long as required to sustain growth on a durable basis.

  • The RBI maintained its GDP growth forecast at 10.5 per cent for 2021-22.

Measures for liquidity announced

  • RBI also announced a series of measures to inject liquidity in the government securities market and the financial system.

  • RBI will ensure orderly conduct of government borrowing programme. In this respect, the central bank announced a secondary market government securities (G-sec) acquisition plan worth Rs 1 lakh crore for April-June.

  • Amid the government plans to support a new asset reconstruction company being set up by banks, the RBI has decided to set up a committee to review the working of ARCs to ensure how better these entities can support the financial sector.

  • In the policy review, the RBI decided to extend the RTGS and NEFT payments platforms to prepaid payment instruments, white label ATMs as well.