Highlights of RBI's monetary policy statement

Mumbai: Following are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday:

* Repo rate reduced by 25 bps to 5.75 per cent for third time in a row.

* Reverse repo rate now stands at 5.50 pc, marginal standing facility (MSF) rate 6 per cent.

* RBI changes policy stance to accommodative from neutral.

* Cuts GDP growth forecast to 7per cent from 7.2 per cent for FY20.

* Raises retail inflation forecast for Apr-Sept to 3-3.1 per cent and 3.4-3.7 per cent in Oct-March.

* Projects upward bias in food inflation in near term due to rising prices of food items.

* Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario.

* Waives RTGS and NEFT charges to promote digital transactions.

* Sets up a panel to review ATM charges, fees levied by banks.

* To issue draft guidelines for 'on tap' licensing of small finance banks by August.

* Flags sharp slowdown in investments, moderation in private consumption growth as concern.

* All six MPC members voted in favour of 0.25 per cent policy rate cut.

* Average daily surplus liquidity in the system at Rs 66,000 crore in early June.

* Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019.

* Next monetary policy statement on August 7.