In a stylised mock charge on "inflationary expectations", the RBI on Wednesday marked up the cost of money it lends to banks against securities under repo by 25 basis points to 7.50 per cent. At the same time, it lifted growth projections for the current fiscal to 8.5-9 per cent over its last estimate of 8 per cent. All other key markers were left unchanged by the RBI as a springtime offer to the economy.
To contain "sharp increases in asset prices as well as greater volatility in financial markets", the RBI Governor, Dr Yaga Venugopal Reddy, has raised provisioning on standard assets against loans to the real estate sector, outstanding credit card receivables, loans and advances qualifying as capital market exposure and personal loans to two per cent from one per cent. Provisioning for loans to housing, agriculture, SMEs and industry remain unchanged.
Banks will have to provide two per cent (existing 0.4 per cent) on exposures in standard assets to non-deposit taking NBFCs while the risk weight goes up to 125 per cent from 100 per cent.
To contain "sharp increases in asset prices as well as greater volatility in financial markets", the RBI Governor, Dr Yaga Venugopal Reddy, has raised provisioning on standard assets against loans to the real estate sector, outstanding credit card receivables, loans and advances qualifying as capital market exposure and personal loans to two per cent from one per cent. Provisioning for loans to housing, agriculture, SMEs and industry remain unchanged. 
