Published on: December 9, 2021


RBI POLICY RATES NEWS The Monetary Policy Committee (MPC) of the Reserve Bank of India kept key policy rates unchanged


  • Repo rate – the rate at which the RBI lends funds to banks —4 per cent
  • Reverse repo rate — the rate at which RBI borrows from banks –3.35 per cent
  • Bank rate — the rate at which RBI lends short-term funds to banks sans security —4.25 per cent
  • Why the decision – Revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward
  • Will help maintain the status quo on the prevailing low interest rate regime for some more time
  • For borrowers as the environment of affordability will continue



  • Government-constituted Committee of RBI under the RBI Act, 1934.
  • Tasked with framing monetary policy using tools like the repo rate, reverse repo rate, bank rate, cash reserve ratio.
  • Six members.
  • Government will nominate three members.
  • Other three members come from the RBI
  • RBI governor is the ex-officio chairperson.
  • Members of the MPC will be appointed for four years and shall not be eligible for reappointment.
  • The governor does not enjoy a veto power but has a casting vote in case of a tie