Tuesday 7 June 2016

RBI: To monitor Marginal Cost Lending Rate framework

More monetary transmission to support the revival of growth, continues to be critical, says RBI.

Raghuram Rajan
More monetary transmission to support the revival of growth, continues to be critical, says RBI.

The government’s reform measures on small savings rates combined with the central bank's refinements in the liquidity management framework should help the transmission of past policy rate reductions into lending rates of banks. 
The Reserve Bank of India will shortly review the implementation of the Marginal Cost Lending Rate framework by banks. Timely capital infusions into constrained public sector banks will also aid credit flow.

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