RBI cuts repo rate by 25 base points to 5.75% from 6.00%, NEFT & RTGS Charges Waived
RBI cuts repo rate by 25 base points to 5.75% from 6.00%. RBI Cut in Repo Rate from 6.00 Percent to 5.75 Percent. 0.25% reduction in repo rate will be cheaper, your EMI, In the new financial year, the Reserve Bank of India’s first monetary policy review meeting has found great relief to the common man. RBI goes for 25 bps rate cut, 3rd in a row; shifts policy stance to ‘accommodative’. Actually, 25 basis points have been deducted from the central bank’s repo rate. With this, the repo rate has now reduced from 6.00% to 5.75%. The Reserve Bank has reduced the GDP estimation by 0.2 percent for the year 2019-20.
In the second term of the Modi government, the Reserve Bank of India has given the first major gift. Actually, the repo rate has been cut once again by the RBI. RBI’s monetary review meeting has cut 0.25 percent. With this, the new repo rate has now been 5.75%. This was the first monetary review meeting in the second term of the Narendra Modi-led government.
Even in the last two meetings of the RBI, the MPC has cut the repo rate by 0.25 percent, respectively. That is, for the third time in June, the central bank has reduced the repo rate. It is the first time in the Reserve Bank’s history that after the appointment of RBI governor, there has been a decline in the repo rate for the third consecutive time. Let us know that after the resignation of Urjit Patel in December last year, the Shaktakantanta Das was appointed as Governor.
RBI cuts repo rate by 25 basis points to 5.75% from 6.00%
– ANI (@ANI) June 6, 2019
GDP estimates reduced
Meanwhile, the Reserve Bank has reduced the GDP estimation. According to the Reserve Bank, the GDP growth rate is estimated at 7 percent. Earlier, the RBI had estimated GDP growth at 7.2 percent. At the same time, the central bank has estimated the inflation rate to be 3 to 3.1 per cent in the first half of 2019-20. In the second half of the year, this figure can remain 3.4% -3.7%.
How will you gain
With low repo rates, banks will be able to get affordable funding from RBI, hence the bank will now be able to offer other loans including home loans, car loan at lower interest rates. It will also benefit those who have a home loan or auto loan. In fact, after the repo rate cut, banks will be forced to reduce the interest rate on home or auto loans. Let us know that after the new rules of RBI, banks will have to give the benefit of repo rate reduction to the common people. In this case, if your home or auto loan is going on, its EMI will be reduced.
Gift for Online Transactions
Apart from this, those who make online transactions have received good news from the RBI meeting. Actually, the Reserve Bank has removed the fees imposed on RTGS and NEFT transactions. This means that people who transact through RTGS and NEFT will not have to pay any extra charge.
What is RTGS and NEFT
Money transfer works immediately under Real Time Gross Settlement (RTGS) system. RTGS is mainly used to transfer large amounts. Under this, a minimum of Rs 2 lakh can be sent and there is no limit to sending the maximum amount. The RTGS of different banks varies according to the charging amount. There is no minimum and maximum payment limit for transfer to National Electronic Fund Transfer (NEFT). This charge also increases according to the amount.