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Reserve Bank Of India cuts repo rate by 25 bps to 7.5 per cent from 7.75 per cent

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NEW DELHI: Reserve Bank of India on Wednesday cut repo rate by 25 bps to 7.5 per cent from 7.75 per cent earlier. Consequently, the reverse repo rate under the LAF stands adjusted to 6.5 per cent.

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 kept the CRR of of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); It will continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions.

The softer readings on inflation are expected to come in through the first half of 2015-16 before firming up to below 6 per cent in the second half, the central bank said in a statement.

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PNB says no “cash shortage” in its ATMs

Finance Minister Arun Jaitley sought to allay fears amidst reports of a cash crunch and empty ATMs in the country

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PNB: No cash shortage in ATMs. Wikimedia Commons

State-run Punjab National Bank (PNB) on Wednesday said there is no “cash shortage in its ATMs across the country.

“Overall, Punjab National Bank has not faced any cash shortage in its ATMs across the country and continue to function as usual,” the state-run lender said in a statement. “Out of 9,679 PNB ATMs, there is a 90 per cent availability of ATMs which is normal.”

PNB denies claims of cash shortage.

On Tuesday, Finance Minister Arun Jaitley sought to allay fears amidst reports of a cash crunch and empty ATMs in the country by stating that “there is more than adequate currency in circulation”, even as the government blamed “unusual demand” for shortages in some areas.

Also Read: PNB scam: Additional Rs 1,300 cr fraud revealed

Besides, the central government announced that it has decided to increase printing of Rs 500 notes by five times. In addition, the Reserve Bank of India (RBI) said that it is “taking steps to move currency to areas” which have witnessed unusually large cash withdrawals.

“The shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway. RBI is closely monitoring both these aspects,” the RBI had said in a statement on Tuesday. “Further, as a matter of abundant precaution, RBI is also taking steps to move currency to areas which are witnessing unusually large cash withdrawals.” IANS

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