New Delhi
Finance Minister Nirmala Sitharaman will meet with the heads of public sector banks (PSBs) on June 27 to review their financial performance and discuss the progress of various government schemes. This meeting comes shortly after the Reserve Bank of India (RBI) made significant moves to support economic growth through policy changes.
In a surprising decision, the RBI recently reduced the repo rate by 50 basis points, bringing it down to 5.5%. This marks a major step towards easing interest rates in the country. Additionally, the central bank lowered the cash reserve ratio (CRR) by 100 basis points to 3%, to be implemented in phases. This move is expected to inject about ₹2.5 lakh crore into the banking system, which already has surplus liquidity.
The RBI’s monetary policy committee, led by Governor Sanjay Malhotra, voted five to one in favour of this rate cut. The upcoming meeting between the Finance Minister and bank heads is expected to assess the impact of these measures and ensure that the benefits are passed on to borrowers and businesses, thereby helping to boost the economy.