The Reserve Bank of India has made an announcement during the monetary policy review on July 27th that the policy will now be reviewed every 45 days instead of the traditional method of reviewing the policy every three months. The four year long tradition of quarterly policy review will now enter a transition.

"In a rapidly evolving macroeconomic situation, however, a gap of a quarter between policy reviews can be too long," RBI said in its monetary policy review.

Owing to the global economic slowdown, RBI had to go for off cycle policy actions for two years from April 2008 to July 2010.

"In a rapidly evolving macroeconomic situation, we need to combine the rigour and comprehensiveness of the quarterly process with the responsiveness and flexibility of more frequent reviews," RBI Governor D. Subbarao said.

The mid quarter reviews will take place as per original schedule that is in June, September, December and March. The next mid quarter is scheduled on September 16.