(a) whether the Reserve Bank of India (RBI) has taken decision not to hike
the interest rates as economic recovery is still in a nascent stage;
(b) if so, the details thereof;
(c) whether the RBI has asked the banks to keep more cash with the Central Bank
to check inflationary pressures in the cash reserve ratio by 25-50 basic points;and
(d) if so, the details thereof?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (d): Interest rates have been deregulated and the Reserve Bank of India (RBI) does not
issue any directions to banks to change interest rates. However, depending upon the evolving
economic situation, the RBI alters its key policy rates from time to time. Beginning October,
2008, RBI had effected substantial reduction in Repo Rate,Reverse Repo Rate and Cash Reserve
Ratio (CRR) in several stages but took a decision not to change these rates in its Second
Quarter Review of the Monetary Policy in October, 2009. Currently, the Repo Rate is 4.75%,
the Reverse Repo Rate is 3.25% and the CRR is 5% of Net Demand and Time Liabilities (NDTL)
of banks.