Key points from RBI policy meets

Reserve Bank of India (RBI) is currently on a rate cutting spree as the central bank has reduced the repo rate -- the rate at which it lends to banks -- for the fifth time in a row. After this reduction of 25 basis points (bps), which overall translates into 135 bps or 1.35 percentage points this year, the repo rate now stands at 5.15 per cent.

Here's are the key takeaways from the monetary policy committee (MPC) meet:

Rate cut may bring cheer among borrowers:

When the RBI cuts rates, banks are expected to pass on the benefit to consumers and reduce interest rates on home, auto, personal or other loans which may result in lower EMIs (equated monthly instalments).

As the RBI has compelled banks to align all their retail loans to external benchmarks, and a majority of lenders have adopted the repo rate as the benchmark, the cut will likely bring cheer to borrowers.

Any scope for another rate cut?

The central bank has maintained its "accommodative" stance. "The Reserve Bank will continue the 'accommodative' stance as long as it is required to revive the growth," RBI governor Das said .

This leaves borrowers with a hope that that the key lending rate may fall further.

Shaktikanta Das on PMC Bank crisis:

"As soon as this issue came to the central bank's notice, the RBI has acted very swiftly. One incident should not be used to generalise the state of all cooperative banks. Banking system sound, stable and there's no reason to panic," Das stated on Punjab and Maharashtra Cooperative (PMC) Bank crisis.

RBI governor on 'single-use plastic ban':

Just seconds before the MPC media briefing was about to get over, the RBI governor was congratulated for opting "plastic free folder and water bottle". To which the governor smiled and replied: "We've decided and we've in fact issued a circular internally for doing away with single-use plastic."

Fall in economic growth projection:

The Reserve Bank sharply cut its economic growth projection for this fiscal to 6.1 per cent from 6.9 per cent earlier, but expressed hope that the growth will recover in the second half of 2019-20.

The central bank's estimates come in the wake of GDP growth sliding to a six-year low of 5 per cent in the June quarter, on a massive slowdown in consumption and private sector investments.

Micro-lenders' borrowers:

On the regulation and supervision front, the RBI decided to increase the household limits for micro-lenders' borrowers, and also raise the cap to Rs 1.25 lakh per eligible borrower from the previous Rs 1 lakh.