RBI MPC keeps repo rate unchanged at 6%, tells banks to shape up

Says recap will be front-loaded for healthy banks; others have to prove efficiency

The Reserve Bank of India (RBI) kept its policy rate unchanged and stance neutral but its governor, Urjit Patel, set stiff conditions for ailing state-owned banks to receive fresh capital from the government.
 
Following the central bank’s fifth bi-monthly monetary policy review, the repo rate, at which the RBI lends to banks, remained at 6 per cent.
 
All 10 economists and bond market dealers polled by Business Standard had predicted a pause.

 
Ravindra Dholakia, an external member of the monetary