RBI’s COVID-19 – Regulatory Package

RBI has issued directions to all the financing agencies including all Banks, Financial Institutions, NBFC’s & Cooperative Banks etc under COVIC-19 Regulatory Package.

Statement on Developmental and Regulatory Policies

RBI released the statement on Development and Regulatory Policies alongwith the 7th Bi-Monthly Policy review on 27th March 2020.This Statement sets out various developmental and regulatory policies that directly address the stress in financial conditions caused by COVID-19. They consist of: (i) expanding liquidity in the system sizeably to ensure that financial markets and institutions are able to function normally in the face of COVID-related dislocations; (ii) reinforcing monetary transmission so that bank credit flows on easier terms are sustained to those who have been affected by the pandemic; (iii) easing financial stress caused by COVID-19 disruptions by relaxing repayment pressures and improving access to working capital; and (iv) improving the functioning of markets in view of the high volatility experienced with the onset and spread of the pandemic. The policy initiatives in this section should be read in conjunction with the MPC’s decision on monetary policy actions and stance in its resolution.

Seventh Bi-monthly Monetary Policy Statement, 2019-20 – Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India

A day after Modi govt began its economy rescue in right earnest with a Rs 1.70 lakh crore coronavirus counter, the Reserve Bank of India joined the big fight today with a host of measures aimed at minimising the damage from Covid-19.
These measures come just hours after Moody’s Investors Service cut India’s growth forecasts for 2020 calendar year to 2.5% from 5.3%. The MPC decided by 4-2 majority to reduce repo rate by 75 basis points to 4.4 per cent. The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.

Covid-19 relief package: FM announces Rs ₹1.7-lakh crore package for poor and migrants under the Pradhan Mantri Gareeb Kalyan Scheme.

Covid-19 relief package: FM announces Rs 1.7 trn plan for poor and migrants under the Pradhan Mantri Gareeb Kalyan Scheme.. Package announced includes both food security and cash transfer components.

RBI shifts its Accounting Year to July 2020-Mar 2021

The Reserve Bank of India (RBI) has decided to align its financial year with the Government.

How Will Increasing Debt Levels Impact Bitcoin’s Price?

Debt is often compared to being a double-edged sword. Countries can borrow money to stimulate growth and large internal projects, affording their citizens a better economy to accumulate wealth and a higher quality of living. However, this debt comes with interest, and many countries end up in a vicious cycle of borrowing or printing more money to pay off their debts.
The more money a country borrows, the more it has to pay back in the future. This means future generations will end up having to pay off the interest of debt borrowed in the past, reducing their ability to spend money on things they really need.

RBI announces draft revival plan for Yes Bank.

Reserve Bank of India (RBI) today announced a draft revival plan for the beleaguered Yes Bank, in which it has been proposed that SBI can invest in the reconstructed bank for up to 49 per cent stake for nearly Rs 2,450 crore. The central bank has invited suggestions from public on the draft scheme till Monday, after which a final call will be taken.

Finance Minister unveils EASE Roadmap for Banking of the Future EASE 3.0 Reforms

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman unveiled EASE 3.0, the Public Sector Bank (PSB) Reforms Agenda 2020-21 for smart, tech-enabled banking, and the PSB EASE Reforms Annual Report 2019-20 on February 26, 2020 during an event in New Delhi.

Incentivising Bank Credit to Specific Sectors – Exemption from CRR Maintenance & FAQ on CRR Exemptions

RBI allowed the banks to deduct the equivalent amount of incremental credit disbursed by them as retail loans to automobiles, residential housing, and loans to micro, small and medium enterprises (MSMEs), over and above the outstanding level of credit to these segments as at the end of the fortnight ended January 31, 2020 from their net demand and time liabilities (NDTL) for maintenance of the cash reserve ratio (CRR).

Guidelines on Merchant Acquiring Business – Regional Rural Banks

RBI allows RRBs to act as merchant acquiring banks using Aadhaar Pay – BHIM app and POS terminals.