Following are the highlights of RBI Governor Shaktikanta Das’statement and resolution of the Monetary Policy Committee (MPC): * Benchmark rate kept unchanged for third time in a row at 4 pc * Indian economy expected to contract 7.5 pc this fiscal, lower than 9.5 pc contraction projected in Oct * Economy to clock growth of 0.1 pc in Q3; Q4 to see 0.7 pc growth * Retail inflation projected at 6.8 pc in Q3, 5.8 pc in Q4 * Inflation to remain elevated, barring transient relief in the winter months * Fiscal stimulus moving beyond being supportive of consumption and liquidity to supporting growth-generating investment. * Private investment still slack and capacity utilisation has not fully recovered * RBI to use various instruments at appropriate time to ensure ample liquidity is available in system * RBI ready to take further measures to ease liquidity; will continue to respond to global uncertainty * RBI to maintain accommodative monetary policy stance to support growth, keep inflation at targeted level * To raise limit for contactless card transaction from Rs 2,000 to Rs 5,000 per transaction from January * RTGS system to be made 24X7 in next few days * Commercial, cooperative banks to retain profit made in 2019-20; not to make any dividend payment * RBI committed to preserving depositors’ interest in the financial system.
