RBI Monetary Policy December 2024: Repo Rate Unchanged, GDP Forecast Lowered

Mumbai, Dec 6 (PTI) Following are the highlights of the December monetary policy announced by the Reserve Bank Governor Shaktikanta Das on Friday:


* Key interest rate (repo) kept unchanged at 6.5 pc

* RBI continues with 'neutral' monetary policy stance

* Cash Reserve Ratio (CRR) reduced to 4 pc from 4.5 pc, to unlock Rs 1.16 lakh crore of bank funds

* RBI sharply lowers GDP growth forecast for FY25 to 6.6 pc from 7.2 pc

* Inflation projection for FY25 raised to 4.8 pc from 4.5 pc

* Collateral-free loan for agriculture sector raised to Rs 2 lakh per borrower from Rs 1.6 lakh

* Interest rate ceiling on FCNR (B) deposits raised

* Small finance banks permitted to extend pre-sanctioned credit lines through UPI

* RBI to launch podcasts for wider dissemination of information to general public

* RBI to set up an expert panel to develop a framework for responsible, ethical use of AI in the financial sector

* Next monetary policy meeting scheduled for February 5-7, 2025.