RBI's Mid-Quarter Policy: MSF Rate Cut by 75 Basis Points, CRR Requirement Lowered, Repo Rate Up by 25 Basis Points.

The Reserve Bank of India, led by the Governor, announced a mid-quarter monetary policy review in September 2013. The Marginal Standing Facility rate was reduced by 75 basis points, and the minimum daily CRR balance requirement was lowered to 95%. These changes aim to boost growth, reduce market distortions, and alleviate pressure on corporate and bank balance sheets. Despite these adjustments, the repo rate was increased by 25 basis points to address inflationary pressures. The RBI also implemented measures like liberalizing bank branching and introducing swap facilities, receiving significant inflows. Efforts to address corporate distress and bank NPAs are underway, along with initiatives to deepen financial markets.