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Following are the highlights of RBI monetary policy review:
*Short-term lending (repo) rate unchanged at 8%.
*Cash reserve ratio (CRR) too unchanged at 4%.
*No rate hike if inflation continues to trend lower.
*Economic growth for 2014-15 expected at 5.5%.
*CAD expected to come down to 2% of GDP in 2014-15.
*Retail inflation expected to be under 6% in 2014.
*RBI asks banks not to charge penalty for failure to maintain minimum balance in inoperative account.
*Approval of new bank licences after consulting EC.
*RBI open to banking mergers, provided competition and stability are not compromised.
*Industrial activity continues to be a drag on economy.
*RBI will strive to increase reach of financial services to everyone by using technology and new products.
*Stress on priority sector lending for greater financial access.
*Today’s was first bi-monthly monetary policy review, next one scheduled for June 3.
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