Mumbai, Jun 6 (PTI) Following are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday:*

Repo rate reduced by 25 bps to 5.75 pc for third time in a row *

Reverse repo rate now stands at 5.50 pc, marginal standing facility (MSF) rate 6 pc *

RBI changes policy stance to accommodative from neutral *

Cuts GDP growth forecast to 7pc from 7.2 pc for FY20*

Raises retail inflation forecast for Apr-Sept to 3-3.1 pc and 3.4-3.7 pc in Oct-Mar *

Projects upward bias in food inflation in near term due to rising prices of food items *

Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario *

Waives RTGS and NEFT charges to promote digital transactions *

Sets up a panel to review ATM charges, fees levied by banks *

To issue draft guidelines for 'on tap' licensing of small finance banks by Aug *

Flags sharp slowdown in investments, moderation in private consumption growth as concern *

All six MPC members voted in favour of 0.25 pc policy rate cut *

Average daily surplus liquidity in the system at ₹ 66,000 crore in early June *

Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019 *

Next monetary policy statement on August 7.

Monetary policy shifts to accommodative stance with policy rate reduction and measures to boost liquidity and digital payments. The Reserve Bank cut the policy rate by twenty five basis points, narrowed the interest rate corridor, and changed the policy stance to accommodative, noting elevated system liquidity and foreign exchange reserves. It revised down growth projections and revised up inflation forecasts while flagging risks from food prices, monsoon uncertainty, crude oil, market volatility and fiscal developments. Operational measures include waiving RTGS/NEFT charges, forming a panel to review ATM and bank fees, and issuing draft guidelines for on tap small finance bank licensing.