By IANS,
Mumbai : Following are the highlights of the measures announced by the Reserve Bank of India (RBI) Saturday in a bid to reduce the cost of borrowings of commercial banks and infuse additional liquidity:
– Repo rate lowered by 50 basis points to 7.5 percent
– Statutory liquidity ratio lowered 100 basis points to 24 percent
– Cash Reserve Ratio (CRR) cut by 100 basis points to 5.5 percent
– Special refinance facility introduced against time liabilities
– Further ad hoc cut in statutory liquidity ratio to help mutual funds
– Central bank to continue sale of foreign exchange through agent banks
– Cut in cash reserve ration to release Rs.400 billion
– Securities sold to stabilise financial market will be bought back
– Global pressures on commodity prices abating
– Global turmoil has had knock-on effects on Indian financial markets
– International money markets yet to regain calm, confidence
– Developments will be closely monitored for swift action