(Image source from: })

The Reserve Bank of India, has taken steps to keep the bankers and the business class by consolidating the interest rates in line with financial health and the budget by the FM. The central bank has reduced 25 basis points more to its recent rate cuts, which means the repo rate now stands at 7.50 from 7.75 percent, and this the reverse repo rate also adjusted to 6.5 percent unlike the January 15th policy.

The Marginal Standing Facility Rate has also adjusted to 8.50%, while the CRR is kept unchanged at 4 percent. According to the modern monetary policy, the RBI now has to maintain its policies to ensure the inflation rates below 6 percent by January 2016 and thereafter regulating the rates for bringing down the inflation rates to 4 percent.

"Going forward, the RBI will seek to bring the inflation rate to the mid-point of the band of 4 +/- 2 per cent provided for in the agreement, i.e., to 4 per cent by the end of a two year period starting fiscal year 2016-17." RBI said in statement.

The RBI’s stance can lower the interest rates for money or loan borrowers and can expand the money circulation in market. The banks will get loans very cheap from the central bank.

-Kannamsai