On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on February 07, 2024, Wednesday, as under:

Tenor 1-day Notified Amount (in ₹ crore) 50,000 Total amount of offers received (in ₹ crore) 41,804 Amount accepted (in ₹ crore) 41,804 Cut off Rate (%) 6.49 Weighted Average Rate (%)

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on February 06, 2024, Tuesday, as under:

Tenor  1-day  Notified Amount (in ₹ crore)  75,000  Total amount of offers received (in ₹ crore)  27,538  Amount accepted (in ₹ crore)  27,538  Cut off Rate (%)  6.49  Weighted Average Rate (%)  6.49  Partial Acceptance Percentage of offers received at cut off rate  NA  Ajit Prasad Director (Communications) Press Release: 2023-2024/1806

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on February 06, 2024, Tuesday, as under:

Tenor  4-day  Notified Amount (in ₹ crore)  50,000  Total amount of offers received (in ₹ crore)  18,750  Amount accepted (in ₹ crore)  18,750  Cut off Rate (%)  6.49  Weighted Average Rate (%)  6.49  Partial Acceptance Percentage of offers received at cut off rate NA Ajit Prasad Director (Communications) Press Release: 2023-2024/1803

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on February 05, 2024, Monday, as under:

Tenor  4-day  Notified Amount (in ₹ crore)  50,000  Total amount of offers received (in ₹ crore)  3,975  Amount accepted (in ₹ crore)  3,975  Cut off Rate (%)  6.49  Weighted Average Rate (%)  6.48  Partial Acceptance Percentage of offers received at cut off rate  NA  Ajit Prasad Director (Communications) Press Release: 2023-2024/1789

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on February 02, 2024, Friday, as under:

The Reserve Bank has today released data on Reserve Money for the week ended January 26, 2024. Ajit Prasad Director (Communications) Press Release: 2023-24/1775

Based on an assessment of the prevailing and evolving liquidity conditions, the Reserve Bank of India has decided that an additional aggregate amount of ₹5,000 crore will be made available to the Standalone Primary Dealers (SPDs) under the Standing Liquidity Facility at the prevailing repo rate starting from January 31, 2024. The incremental limits for individual SPDs is being conveyed to them separately. All other terms and conditions of the facility shall remain unchanged.

Tenor 1-day Notified Amount (in ₹ crore) 25,000 Total amount of bids received (in ₹ crore)

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 30, 2024, Tuesday, as under:

Tenor  2-day  Notified Amount (in ₹ crore)  25,000  Total amount of bids received (in ₹ crore)  73,290  Amount allotted (in ₹ crore)  25,001  Cut off Rate (%)  6.74  Weighted Average Rate (%)  6.74  Partial Allotment Percentage of bids received at cut off rate (%)  44.99  Ajit Prasad Director (Communications) Press Release: 2023-2024/1754

The Reserve Bank has today released data on Money Supply for the fortnight ended January 12, 2024.  Ajit Prasad Director (Communications)  Press Release: 2023-2024/1746

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 29, 2024, Monday, as under:  Sl. No.  Notified Amount (₹ crore)  Tenor (day)  Window Timing  Date of Reversal  1  25,000  2  10:30 AM to 11:00 AM  January 31, 2024  (Wednesday)   2. The operational guidelines for the auction will be same as given in Reserve Bank’s Press Release 2021-2022/1572 dated January 20, 2022.

Result of the 15-day Variable Rate Repo auction held on January 25, 2024 Tenor 15-day Notified Amount (in ₹ crore) 2,50,000 Total amount of bids received (in ₹ crore) 3,08,024 Amount allotted (in ₹ crore) 2,50,010

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 25, 2024, Friday as under:

The Reserve Bank has today released data on Reserve Money for the week ended January 19, 2024. Ajit Prasad Director (Communications) Press Release: 2023-2024/1734

Result of the 2-day Variable Rate Repo auction held on January 23, 2024

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 23, 2024, Tuesday, as under: Sl. No. Notified Amount (₹ crore) Tenor (day) Window Timing Date of Reversal 1 1,25,000 2 10:30 AM to 11:00 AM

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 22, 2024, Monday, as under:

Tenor 3-day Notified Amount (in ₹ crore) 50,000 Total amount of bids received (in ₹ crore) 1,35,211 Amount allotted (in ₹ crore) 50,007 Cut off Rate (%) 6.73 Weighted Average Rate (%) 6.74 Partial Allotment Percentage of bids received at cut off rate (%) 49.64 Ajit Prasad Director (Communications) Press Release: 2023-2024/1705
 

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 19, 2024, Friday, as under: Sl. No. Notified Amount

The Reserve Bank has today released data on Reserve Money for the week ended January 12, 2024. Ajit Prasad Director (Communications) Press Release: 2023-2024/1690

Tenor 13-day Notified Amount (in ₹ crore) 1,75,000 Total amount of bids received (in ₹ crore) 3,92,484 Amount allotted (in ₹ crore) 1,75,010 Cut off Rate (%) 6.71 Weighted Average Rate (%) 6.72 Partial Allotment Percentage of bids received at cut off rate (%) 65.40 Ajit Prasad Director (Communications) Press Release: 2023-2024/1661

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 12, 2024, Friday, as under:

The Reserve Bank has today released data on Reserve Money for the week ended January 05, 2024 and Money Supply for the fortnight ended December 29, 2023. Ajit Prasad Director (Communications) 

Tenor  7-day  Notified Amount (in ₹ crore)  1,00,000  Total amount of bids received (in ₹ crore)  2,77,402  Amount allotted (in ₹ crore)  1,00,009  Cut off Rate (%)  6.68  Weighted Average Rate (%)  6.69  Partial Allotment Percentage of bids received at cut off rate (%)  36.68

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 05, 2024, Friday as under: Sl. No. Notified Amount (₹ crore) Tenor (day) Window Timing Date of Reversal 1 1,00,000 7 10:30 AM to 11:00 AM January 12, 2024  (Friday) 2. The operational guidelines for the auction will be same as given in Reserve Bank’s Press Release 2021-2022/1572 dated January 20, 2022

The Reserve Bank has today released data on Reserve Money for the week ended December 29, 2023. Ajit Prasad Director (Communications)

The Reserve Bank has today released data on Money Supply for the fortnight ended December 15, 2023.

Result of the 7-day Variable Rate Repo auction held on December 29, 2023 Tenor 7-day Notified Amount (in ₹ crore) 1,25,000 Total amount of bids received (in ₹ crore) 3,01,274 Amount allotted (in ₹ crore) 1,25,020 Cut off Rate (%) 6.73 Weighted Average Rate (%) 6.74 Partial Allotment Percentage of bids received at cut off rate

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on December 29, 2023, Friday, in lieu of the main operation, as under:

Tenor 2-day Notified Amount (in ₹ crore) 50,000 Total amount of bids received (in ₹ crore) 1,58,399 Amount allotted (in ₹ crore) 50,007 Cut off Rate (%) 6.71 Weighted Average Rate (%) 6.73

The Reserve Bank has today released data on Reserve Money for the week ended December 22, 2023. Ajit Prasad Director (Communications) Press Release: 2023-2024/1552

Currently, recourse to the Standing Deposit Facility (SDF) and the Marginal Standing Facility (MSF) is available on an overnight basis on all days, including Sundays and holidays, but reversal is permitted only on the next working day in Mumbai. As announced in the Governor’s Statement dated December 08, 2023, it has been decided to allow reversal of liquidity facilities under both SDF and MSF even during weekends and holidays with effect from December 30, 2023. The SDF/MSF bids triggered under the Automated Sweep-In and Sweep-Out (ASISO) facility will now reverse on the next calendar day. In the case of a manual bid placed through the e-Kuber portal, the choice with regard to tenor will be exercisable by the eligible entities at the time of placing of bid. Access to SDF/MSF will continue to be available on all days, including Sundays and holidays.

On a review of current and evolving liquidity conditions, the Reserve Bank of India has decided to conduct a Variable Rate Repo auction on December 27, 2023, Wednesday, as under:

The forty sixth meeting of the Monetary Policy Committee (MPC), constituted under Section 45ZB of the Reserve Bank of India Act, 1934, was held during December 6 to 8, 2023.

Result of the 7-day Variable Rate Repo auction held on December 22, 2023 Tenor 7-day Notified Amount (in ₹ crore) 1,75,000 Total amount of bids received (in ₹ crore) 4,25,154 Amount allotted (in ₹ crore) 1,75,013 Cut off Rate (%) 6.68 Weighted Average Rate (%) 6.70

On a review of current and evolving liquidity conditions, the Reserve Bank of India has decided to conduct a Variable Rate Repo auction on December 22, 2023, Friday, as under: Sl. No. Notified Amount (₹ crore) Tenor (day) Window Timing Date of Reversal

The Reserve Bank has today released data on Reserve Money for the week ended December 15, 2023.

Tenor  7-day  Notified Amount (in ₹ crore)  1,00,000  Total amount of bids received (in ₹ crore)  2,73,354  Amount allotted (in ₹ crore)  1,00,006  Cut off Rate (%)  6.61  Weighted Average Rate (%)  6.63  Partial Allotment Percentage of bids received at cut off rate (%)  78.5  

The 14-day VRRR auction conducted on December 01, 2023 and subscribed for ₹22,468 crore is maturing and allowed to be reversed on December 15, 2023. Furthermore, in view of likely outflows from the banking system on account of advance tax and GST payments, it has been decided to conduct a 7-day Variable Rate Repo auction on December 15, 2023, Friday, in lieu of the main operation, as under:

The Reserve Bank has today released data on Reserve Money for the week ended December 08, 2023 and Money Supply for the fortnight ended December 01, 2023. Ajit Prasad Director (Communications) Press Release: 2023-2024/1473

In our monetary policy statement of April 2016, we stated that we would watch macroeconomic and financial developments in the months ahead with a view to responding as space opens up. Incoming data since then show a sharper-than-anticipated upsurge in inflationary pressures emanating from a number of food items (beyond seasonal effects), as well as a reversal in commodity prices. A strong monsoon, continued astute food management, as well as steady expansion in supply

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (October 6, 2023) decided to:

• Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.

The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

• The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

The main considerations underlying the decision are set out in the statement below.

Assessment

Global Economy

2. Global growth is losing momentum. Inflation is easing gradually but remains well above target in major economies. Concerns about higher for longer rates are imparting volatility to global financial markets. Sovereign bond yields have hardened, the US dollar has appreciated, and equity markets have corrected. Emerging market economies (EMEs) are experiencing currency depreciation and volatile capital flows.

Domestic Economy

3. Real gross domestic product (GDP) posted a growth of 7.8 per cent year-on-year (y-o-y) in Q1:2023-24 (April-June), underpinned by private consumption and investment demand.

4. South-west monsoon rainfall recovered during September and ended 6 per cent below the long period average. The acreage under kharif crops was 0.2 per cent higher than a year ago. The index of industrial production rose by 5.7 per cent in July; core industries output expanded by 12.1 per cent in August. Purchasing managers’ indices (PMIs) and other high frequency indicators of the services sector exhibited healthy expansion in August-September.

5. On the demand front, urban consumption is buoyant while rural demand is showing signs of revival. Investment activity is benefitting from public sector capex. Strong growth is seen in steel consumption, cement production as well as in imports and production of capital goods. Merchandise exports and non-oil non-gold imports remained in contraction in August, although the pace of decline eased. Services exports improved in August.

6. CPI headline inflation surged by 2.6 percentage points to 7.4 per cent in July due to spike in vegetable prices, before moderating somewhat in August to 6.8 per cent. Fuel inflation edged up to 4.3 per cent in August. Core inflation (i.e., CPI excluding food and fuel) softened to 4.9 per cent during July-August 2023.

7. As on September 22, 2023, money supply (M3) expanded by 10.8 per cent (y-o-y) and bank credit grew by 15.3 per cent. India’s foreign exchange reserves stood at US$ 586.9 billion as on September 29, 2023.

December 8, 2023 Statement on Developmental and Regulatory Policies This Statement sets out various developmental and regulatory policy measures relating to (i) Financial Markets; (ii) Regulations; and (iii) Payment Systems and Fintech.

As 2023 comes to an end and a new year begins, the long-awaited normality still eludes the global economy. The years 2020 to 2023 will perhaps go down in history as the period of ‘Great Volatility’, comprising a host of black swan events in quick succession. The global economy is showing signs of slowdown, though unevenly across geographies and sectors. The Emerging Market Economies (EMEs) as a group have remained resilient during the current bout of volatility, unlike previous episodes. While headline inflation has receded from the highs of last year, it remains above target in many countries. Core inflation continues to be sticky, impeding the last mile of disinflation. Major central banks have kept rates on hold while refraining from forward guidance in view of the prevailing uncertainties. Financial markets remain volatile in their quest for definitive signals about the future path of interest rates.

The Reserve Bank has today released data on Reserve Money for the week ended December 01, 2023.

Tenor 14-day Notified Amount (in ₹ crore) 50,000 Total amount of offers received (in ₹ crore) 22,468 Amount accepted (in ₹ crore) 22,468 Cut off Rate (%) 6.49 Weighted Average Rate (%) 6.49 Partial Acceptance Percentage of offers received at cut off rate NA Ajit Prasad Director (Communications) Press Release: 2023-2024/1389

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on December 01, 2023, Friday, as under:  Sl. No. Notified Amount (₹ crore) Tenor (day) Window Timing Date of Reversal 1 50,000 14 10:30 AM to 11:00 AM December 15, 2023 (Friday) 2. The operational guidelines for the auction as given in the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020 will remain the same.  Ajit Prasad Director (Communications) Press Release: 2023-2024/1374

Data on sectoral deployment of bank credit for the month of September 20231 collected from 40 select scheduled commercial banks, accounting for about 93 per cent of the total non-food credit deployed by all scheduled commercial banks, are set out in Statements I and II. On a year-on-year (y-o-y) basis, non-food bank credit2 registered a growth of 15.3 per cent in September 20233 as compared with 16.9 per cent a year ago. Highlights of the sectoral deployment of bank credit3 are given below:

The Reserve Bank has today released data on Money Supply for the fortnight ended November 17, 2023 Ajit Prasad Director (Communications) Press Release: 2023-2024/664

The Reserve Bank has today released data on Reserve Money for the week ended November 24, 2023. Ajit Prasad Director (Communications) Press Release: 2023-2024/1368

The Reserve Bank has today released data on Reserve Money for the week ended November 17, 2023. Shweta Sharma Deputy General Manager Press Release: 2023-2024/1335

Tenor 14-day Notified Amount (in ₹ crore) 50,000 Total amount of offers received (in ₹ crore) 22,442 Amount accepted (in ₹ crore) 22,442 Cut off Rate (%) 6.49 Weighted Average Rate (%) 6.49

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on November 17, 2023, Friday, as under:

Sl. No.    Notified Amount
(₹ crore)    Tenor
(day)    Window Timing    Date of Reversal
1    50,000    14    10:30 AM to 11:00 AM    December 01, 2023

The Reserve Bank has today released data on Reserve Money for the week ended November 10, 2023 and Money Supply for the fortnight ended November 03, 2023.

The Reserve Bank has today released data on Reserve Money for the week ended November 03, 2023. Shweta Sharma Deputy General Manager Press Release: 2023-2024/1265

Tenor 14-dayNotified Amount (in ₹ crore) 50,000Total amount of offers received (in ₹ crore) 20,482Amount accepted (in ₹ crore) 20,482

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on November 03, 2023, Friday, as under:

The Reserve Bank has today released data on Reserve Money for the week ended October 27, 2023 and Money Supply for the fortnight ended October 20, 2023.

Shweta Sharma     
Deputy General Manager

Press Release: 2023-2024/1218

Data on sectoral deployment of bank credit for the month of September 20231 collected from 40 select scheduled commercial banks, accounting for about 93 per cent of the total non-food credit deployed by all scheduled commercial banks, are set out in Statements I and II.

On a year-on-year (y-o-y) basis, non-food bank credit2 registered a growth of 15.3 per cent in September 20233 as compared with 16.9 per cent a year ago.

Highlights of the sectoral deployment of bank credit3 are given below:

The Reserve Bank has today released data on Reserve Money for the week ended October 13, 2023. Ajit Prasad            
Director (Communications) Press Release: 2023-2024/1174

[Under Section 45ZL of the Reserve Bank of India Act, 1934] The forty fourth meeting of the Monetary Policy Committee (MPC), constituted under Section 45ZB of the Reserve Bank of India Act, 1934, was held during August 8 to 10, 2023. 2. The meeting was attended by all the members – Dr. Shashanka Bhide, Honorary Senior Advisor, National Council of Applied Economic Research, Delhi; Dr. Ashima Goyal, Emeritus Professor, Indira Gandhi Institute of Development Research, Mu

Tenor14-day Notified Amount (in ₹ crore)50,000 Total amount of offers received (in ₹ crore)5,354 Amount accepted (in ₹ crore)5,354 Cut off Rate (%)6.49 Weighted Average Rate (%)6.49 Partial Acceptance Percentage of offers received at cut off rateNA

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on October 20, 2023, Friday, as under:

Sl. No.Notified Amount
(₹ crore)Tenor (day)Window TimingDate of Reversal

150,0001410:30 AM to 11:00 AMNovember 03, 2023
(Friday)

2. The operational guidelines for the auction as given in the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020 will remain the same.

The Reserve Bank has today released data on Reserve Money for the week ended October 13, 2023 and Money Supply for the fortnight ended October 06, 2023.

The Reserve Bank has today released data on Reserve Money for the week ended September 22, 2023. Ajit Prasad Director (Communications) Press Release: 2023-2024/1002

This Statement sets out various developmental and regulatory policy measures relating to (i) Regulation (ii) Payments Systems and (iii) Consumer Protection.

Tenor14-day Notified Amount (in ₹ crore) 50,000 Total amount of offers received (in ₹ crore)6,668 Amount accepted (in ₹ crore)6,668 Cut off Rate (%)6.49 Weighted Average Rate (%)6.49 Partial Acceptance Percentage of offers received at cut off rateNA Ajit Prasad           
Director (Communications)

Press Release: 2023-2024/1061

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (October 6, 2023) decided to:

• Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.

The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

• The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

The main considerations underlying the decision are set out in the statement below.

Assessment

Global Economy

2. Global growth is losing momentum. Inflation is easing gradually but remains well above target in major economies. Concerns about higher for longer rates are imparting volatility to global financial markets. Sovereign bond yields have hardened, the US dollar has appreciated, and equity markets have corrected. Emerging market economies (EMEs) are experiencing currency depreciation and volatile capital flows.

Domestic Economy

3. Real gross domestic product (GDP) posted a growth of 7.8 per cent year-on-year (y-o-y) in Q1:2023-24 (April-June), underpinned by private consumption and investment demand.

4. South-west monsoon rainfall recovered during September and ended 6 per cent below the long period average. The acreage under kharif crops was 0.2 per cent higher than a year ago. The index of industrial production rose by 5.7 per cent in July; core industries output expanded by 12.1 per cent in August. Purchasing managers’ indices (PMIs) and other high frequency indicators of the services sector exhibited healthy expansion in August-September.

5. On the demand front, urban consumption is buoyant while rural demand is showing signs of revival. Investment activity is benefitting from public sector capex. Strong growth is seen in steel consumption, cement production as well as in imports and production of capital goods. Merchandise exports and non-oil non-gold imports remained in contraction in August, although the pace of decline eased. Services exports improved in August.

6. CPI headline inflation surged by 2.6 percentage points to 7.4 per cent in July due to spike in vegetable prices, before moderating somewhat in August to 6.8 per cent. Fuel inflation edged up to 4.3 per cent in August. Core inflation (i.e., CPI excluding food and fuel) softened to 4.9 per cent during July-August 2023.

7. As on September 22, 2023, money supply (M3) expanded by 10.8 per cent (y-o-y) and bank credit grew by 15.3 per cent. India’s foreign exchange reserves stood at US$ 586.9 billion as on September 29, 2023.

Kautilya in his Arthashastra more than two thousand years ago, had said: “stability enables a state not only to share its wealth equitably but also augment it”.1 These words are relevant even today. In fact, they have eternal validity. Macroeconomic stability and inclusive growth are the fundamental principles underlying a country’s progress. The policy mix that we have pursued during the recent years of multiple and unparalleled shocks has fostered macroeconomic and financial stability. The external sector also remains eminently manageable. The twin balance sheet stress that was encountered a decade ago has now been replaced by a twin balance sheet advantage with healthier balance sheets of both banks and corporates. India is poised to become the new growth engine of the world.

2. The need of the hour is to remain vigilant and not give room to complacency. Lessons from the past one and a half decades and from living through the global financial crisis and the taper tantrum tell us that risks and vulnerabilities can grow even in good times. All stakeholders in the economy, be it lenders, corporates, businesses – small and big – and even policymakers should continue to reinforce their buffers and fundamentals in the fast changing world that we live in. So far as the Reserve Bank is concerned, we have identified high inflation as a major risk to macroeconomic stability and sustainable growth. Accordingly, our monetary policy remains resolutely focused on aligning inflation to the 4 per cent target on a durable basis.

Decisions and Deliberation of the Monetary Policy Committee (MPC)

3. The Monetary Policy Committee (MPC) met on 4th, 5th and 6th October 2023. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, it decided unanimously to keep the policy repo rate unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

4. I shall now briefly set out the MPC’s rationale for these decisions on the policy rate and the stance. Headline inflation had surged in July driven by tomato and other vegetable prices. It corrected partly in August and is expected to see further easing in September on the back of moderation in these prices. A silver lining amidst all these is declining core inflation (i.e., CPI excluding food and fuel). The overall inflation outlook, however, is clouded by uncertainties from the fall in kharif sowing for key crops like pulses and oilseeds, low reservoir levels, and volatile global food and energy prices. The MPC observed that the recurring incidence of large and overlapping food price shocks can impart generalisation and persistence to headline inflation. Economic activity, on the other hand, has remained resilient. Taking into account the evolving inflation-growth dynamics and the cumulative policy repo rate hike of 250 basis points which is still working through the economy, the MPC decided to keep the policy repo rate unchanged at 6.50 per cent in this meeting. The transmission of the 250 basis points (bps) increase in the policy repo rate to bank lending and deposit rates is still incomplete and hence the MPC decided to remain focused on withdrawal of accommodation.2 The MPC remains highly alert and prepared to undertake timely policy measures, as may be necessary, in order to align inflation to the target and anchor inflation expectations.

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on September 22, 2023, Friday, as under:

Sl. No.Notified Amount
(₹ crore)Tenor
(day)Window TimingDate of Reversal

150,0001410:30 AM to 11:00 AMOctober 06, 2023
(Friday)

2. The operational guidelines for the auction as given in the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020 will remain the same.

Ajit Prasad           
Director (Communications)

Press Release: 2023-2024/960

The Reserve Bank has today released data on Reserve Money for the week ended September 29, 2023 and Money Supply for the fortnight ended September 22, 2023.

Ajit Prasad            
Director (Communications)

Press Release: 2023-2024/1042

Data on sectoral deployment of bank credit for the month of August 20231 collected from 40 select scheduled commercial banks, accounting for about 93 per cent of the total non-food credit deployed by all scheduled commercial banks, are set out in Statements I and II.On a year-on-year (y-o-y) basis, non-food bank credit2 registered a growth of 15.0 per cent in August 20233 as compared with 16.0 per cent a year ago.

The Reserve Bank has today released data on Reserve Money for the week ended September 22, 2023. Ajit Prasad Director (Communications) Press Release: 2023-2024/1002 

The Government of Maharashtra has declared September 29, 2023 as a public holiday under Section 25 of the Negotiable Instruments Act, 1881. The public holiday on September 28, 2023 declared earlier has been cancelled.2. To ensure smooth functioning of the financial markets and non-disruptive settlement of transactions especially in view of the quarter / half year end

Tenor 14-day Notified Amount (in ₹ crore) 50,000 Total amount of offers received (in ₹ crore)5,995 Amount accepted (in ₹ crore) 5,995 Cut off Rate (%) 6.49 Weighted Average Rate (%) 6.49 Partial Acceptance Percentage of offers received at cut off rateNA Ajit Prasad Director (Communications) Press Release: 2023-2024/969

The Reserve Bank has today released data on Money Supply for the fortnight ended September 08, 2023.Ajit Prasad  Director (Communications) Press Release: 2023-2024/958

The Reserve Bank has today released data on Reserve Money for the week ended September 15, 2023.

The Reserve Bank has today released data on Reserve Money for the week ended September 08, 2023. Ajit Prasad Director (Communications) Press Release: 2023-2024/914

In pursuance of Governor’s Monetary Policy Statement of August 10, 2023, scheduled banks were required to maintain an incremental cash reserve ratio (I-CRR) of 10 per cent on the increase in their net demand and time liabilities (NDTL) between May 19, 2023 and July 28, 2023. The measure was intended to absorb the surplus liquidity generated by various factors, including the return of ₹2000 notes to the banking system. It was indicated that the I-CRR is a temporary measure for managing the liquidity overhang and that the I-CRR will be reviewed on September 8, 2023 or earlier with a view to returning the impounded funds to the banking system ahead of the festival season.

On a review, it has been decided to discontinue the I-CRR in a phased manner. Based on an assessment of current and evolving liquidity conditions, it has been decided that the amounts impounded under the I-CRR would be released in stages so that system liquidity is not subjected to sudden shocks and money markets function in an orderly manner. The release of funds would be as follows:

DateAmount to be released (₹ crore)

September 9, 202325 per cent of the I-CRR maintained

September 23, 202325 per cent of the I-CRR maintained

October 7, 202350 per cent of the I-CRR maintained

Details relating to the winding down of the I-CRR are being notified separately.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/886

Tenor14-day Notified Amount (in ₹ crore)50,000 Total amount of offers received (in ₹ crore)18,670 Amount accepted (in ₹ crore)18,670 Cut off Rate (%)6.49 Weighted Average Rate (%)6.49 Partial Acceptance Percentage of offers received at cut off rateNA Ajit Prasad Director (Communications) Press Release: 2023-2024/885

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on September 08, 2023, Friday, as under:

Sl. No.Notified Amount
(₹ crore)Tenor (day)Window TimingDate of Reversal

150,0001410:30 AM to 11:00 AMSeptember 22, 2023
(Friday)

2. The operational guidelines for the auction as given in the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020 will remain the same.

Ajit Prasad            
Director (Communications)

Press Release: 2023-2024/879

The Reserve Bank has today released data on Reserve Money for the week ended September 01, 2023 and Money Supply for the fortnight ended August 25, 2023. Ajit Prasad Director (Communications) Press Release: 2023-2024/873

[Under Section 45ZL of the Reserve Bank of India Act, 1934] The forty fourth meeting of the Monetary Policy Committee (MPC), constituted under Section 45ZB of the Reserve Bank of India Act, 1934, was held during August 8 to 10, 2023. 2. The meeting was attended by all the members – Dr. Shashanka Bhide, Honorary Senior Advisor, National Council of Applied Economic Research, Delhi; Dr. Ashima Goyal, Emeritus Professor, Indira Gandhi Institute of Development Research, Mu