UPSC CSE Mains Syllabus -GENERAL STUDIES-3- Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Monetary Policy Committee – Highlights

In news:

MPC meeting highlights:

The state government finances are also extremely stretched. To facilitate the borrowing by the state government, for the first time, the central bank has announced OMOs in State Development Loans (SDLs). This is an extremely innovative method suggested by the RBI, which will also facilitate efficient pricing for the states.

 Housing and real estate sector:

In a boost for the housing and real estate sector, the RBI has changed the risk weights on housing loans to individuals. Under the current framework, differential risk weights are applicable to individual housing loans, based on the size of the loan as well as the loan-to-value ratio (LTV). RBI has now rationalized the risk weights for all new housing loans sanctioned up to March 31, 2022 and linked them to LTV ratio only. This will facilitate cheaper home loans and give a fillip to the real estate sector.

Using monetary tools to boost growth and to address some of the immediate needs, and at the same time focusing on long-term strategic projects, the policy statement is indeed powerful.

Source: ”Economic Times”.


Putting to rest the debate on growth versus inflation, the RBI has articulated its policy extremely well in times of volatile situation. Discuss.