Here are 5 quick takeaways from the RBI Monetary Policy:

1) Status quo on repo rate or interest rates and CRR

The RBI kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent. It did not cut the repo rate or rates at which it lends to other banks, as inflation rates, particularly CPI continue to remain high.

2) RBI cuts the SLR

The central bank cut the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 23.0 per cent to 22.5 per cent of their NDTL with effect from the fortnight beginning June 14, 2014. "A reduction in the required SLR will give banks more freedom to expand credit to the non-Government sector. However, the Reserve Bank is also cognisant of the significant on-going financing needs of the Government. Therefore, the SLR is reduced by 0.50 per cent of NDTL, with any further change dependent on the likely path of fiscal consolidation," the RBI has stated.

GDP growth projected at 5-6 per cent

The Reserve Bank has projected the GDP between 5-6 per cent for 2-14-2015. According to the central bank, contingent upon the desired inflation outcome, the April projection of real GDP growth from 4.7 per cent in 2013-14 to a range of 5 to 6 per cent in 2014-15 is retained with risks evenly balanced around the central estimate of 5.5 per cent.

Foreign remittances under Liberalised Remittance Scheme enhanced

As a prudential measure, the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) had been reduced to US$ 75,000 last year. "In view of the recent stability in the foreign exchange market, it has been decided to enhance the eligible limit to US$125,000 without end use restrictions except for prohibited foreign exchange transactions such as margin trading, lottery and the like. Operating guidelines will be issued separately," the RBI has said.

Participation of foreign portfolio investors in currency markets

With a view to improving the depth and liquidity in the domestic foreign exchange market, the RBI has decided to allow foreign portfolio investors to participate in the domestic exchange traded currency derivatives market to the extent of their underlying exposures plus an additional US$ 10 million. Furthermore, it has also been decided to allow domestic entities similar access to the exchange traded currency derivatives market. Detailed operating guidelines will be issued separately.

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