All Banking & Financial Awareness December 2024 I Part-3 I Detailed Explanation I Hindi

All Banking & Financial Awareness December 2024 I Part-3 I Detailed Explanation I Hindi Telegram Channel Link : https://t.me/decodeindian1 RBI Monetary Policy Committee Meeting December 2024 The MPC of the RBI reduced the Cash Reserve Ratio (CRR) by 50 basis points to 4%. The MPC decided by a 4-2 majority to maintain the repo rate at 6.5% for the 11th consecutive time. The Standing Deposit Facility (SDF) rate and the Marginal Standing Facility (MSF) rate were also retained at 6.25% and 6.75%, respectively. The RBI revised the GDP growth forecast for FY25 to 6.6%, down from the earlier projection of 7.2%. The RBI forecasted an inflation rate of 4.8% for FY25. The RBI has asked all banks to waive collateral, mortgage and any margin deposits against farm loans up to a limit of ₹2 lakh. The new rule will be applicable from January 2025. The MIBOR only represents around 2% of the money market as participation in the call market is only limited to banks and primary dealers. With the introduction of a new benchmark, around 98% of transactions done in the overnight segment will be captured. The new benchmark will be based on the secured money market transactions -- both market repo and tri party repo (TREPS). This means that Secured Overnight Rupee Rate (SORR) will eventually replace MIBOR, which has been used as a benchmark since 1998. The RBI announced that it will introduce podcasts as an additional communication tool. The announcement is part of the RBI’s ongoing efforts to enhance engagement and transparency. This new initiative aims to broaden the RBI’s communication channels, making information more accessible to the public.