RBI Credit Policy: The Reserve Bank of India Governor Shaktikanta Das today made the bi-monthly policy announcements. Know the top 10 announcements made by the Governor after days of deliberation by the Monetary Policy Committee (MPC). See highlights here!
RBI Credit Policy Highlights: RBI Governor Shaktikanta Das announcements
1. RTGS system will soon be made 24×7. RBI proposed to reduce settlement and default risk in the system by facilitating settlement of AePS, IMPS, NETC, NFS, RuPay, UPI transactions on all days of the week.
2. MPC voted unanimously to leave the policy repo rate unchanged at 4 percent; Marginal Standing Facility (MSF) rate and the Bank rate remain unchanged at 4.25 percent; The reverse repo rate stands unchanged at 3.35 percent; Continues with the accommodative stance of monetary policy as long as necessary – at least through the current financial year and into the next year.
3. CPI inflation rose sharply to 7.3 percent in September and further to 7.6 percent in October 2020. Outlook for inflation has turned adverse relative to expectations in the last two months. CPI inflation is projected at 6.8 percent for Q3 2020-21, 5.8 percent for Q4:2020-21, and 5.2 to 4.6 percent in H1 2021-22.
4. Recovery in rural demand is expected to strengthen further, while urban demand is also gaining momentum.
5. Private investment is still slack and capacity utilization has not fully recovered.
6. Exports are on an uneven recovery, the prospects have brightened with the progress on the vaccines.
7. Real GDP growth is projected at (-) 7.5 percent in 2020-21; (+) 0.1 percent in Q3 of 2020- 21 and (+) 0.7 percent in Q4 of 2020-21; and 21.9 percent to 6.5 percent in H1 of 2021- 22.
8. On-tap targeted long term repo operations to be expanded to cover other stressed sectors in synergy with the credit guarantee available under the Emergency Credit Line Guarantee Scheme (ECLGS 2.0) of the Government. This will encourage banks to extend credit support to stressed sectors at a lower cost.
9. Regional Rural Banks to be allowed to access the LAF and MSF of the RBI; and also the Call/Notice money market. Commercial and co-operative banks to retain profits; not make any dividend pay-out from the profits for the financial year 2019-20.
10. On Digital payments – to issue Reserve Bank of India (Digital Payment Security Controls) Directions for the regulated entities.
Mean-while, India’s Covid-19 caseload reached 80.8 lakh on Friday, while the total number of recoveries neared the 74-lakh mark, according to data from states and union territories.
The Union Health Ministry data updated at Friday 8 am showed a single-day increase of 48,648 infections, taking the country’s overall Covid-19 tally to 80,88,851, while the death toll climbed to 1,21,090 with 563 people succumbing to coronavirus during the same period.
Total active Covid-19 cases in India, meanwhile, stood at 5,94,386 on Friday morning.
“With 48,648 new Covid-19 infections, India’s total cases surge to 80,88,851. With 563 new deaths, toll mounts to 1,21,090,” news agency ANI tweeted.
“Total active cases are 5,94,386 after a decrease of 9301 in last 24 hrs. Total cured cases are 73,73,375 with 57,386 new discharges in last 24 hrs,” it added.
