Statement on Developmental and Regulatory Policies

RBI has released the Statement on Developmental and Regulatory Policies as announced in Monetary Policy Review dt 9th Oct 20. The measures are intended to (i) enhance liquidity support for financial markets so as to revive activity in targeted sectors of the economy with linkages to other sectors; (ii) provide a boost to exports; (iii) regulatory support to improve the flow of credit to specific sectors within the ambit of the norms for credit discipline; (iv) deepen financial inclusion; and (v) facilitate ease of doing business by upgrading payment system services so as to improve customer satisfaction, while supporting growth.

Government names 3 new members to RBI monetary panel

The government has finally appointed three economists — PMEAC member Ashima Goyal, NCAER’s Shashanka Bhide and IIM-Ahmedabad professor Jayanth Varma — as new members of the RBI’s monetary policy committee (MPC) to decide on interest  rates. Read more at: http://timesofindia.indiatimes.com/articleshow/78503120.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Finance Minister announces measures of Rs 73,000 crore to stimulate consumer spending

Union Finance Minister announces Stimulus to boost Demand in the Economy: Highlights:“Total demand boost due to today’s measures expected to be more than ₹ 1 lakh crore”.Finance Minister Nirmala Sitharaman also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown.

RBI’s Monetary Policy Statement, 2020-21- Resolution of the Monetary Policy Committee (MPC) October 7-9, 2020; Key Takeaways and Highlights

The Reserve Bank of India Governor Shaktikanta Das announced the policy decision of the Monetary policy committee on 9th October 2020. RBI’s MPC began its three-day deliberations on Wednesday. This was the first meeting of the new MPC which was formed after the appointment of three three eminent economists – Jayant Verma, Ashima Goyal and Shashanka Bhide. The meeting of the six-member MPC, earlier slated for September 29 to October 1, was rescheduled as the appointment of independent members was delayed. The MPC must have a quorum of four.

RBI Releases Revised Priority Sector Lending Guidelines

Reserve Bank of India has comprehensively reviewed the Priority Sector Lending (PSL) Guidelines to align it with emerging national priorities and bring sharper focus on inclusive development, after having wide ranging discussions with all stakeholders.
Revised PSL guidelines will enable better credit penetration to credit deficient areas; increase the lending to small and marginal farmers and weaker sections; boost credit to renewable energy, and health infrastructure.

Statement on Developmental and Regulatory Policies

Statement on Developmental and Regulatory Policies sets out various developmental and regulatory policy measures to enhance liquidity support for financial markets and other stakeholders; further easing of financial stress caused by COVID-19 disruptions while strengthening credit discipline; improve the flow of credit; deepen digital payments; augment customer safety in cheque payments; and facilitate innovation across the financial sector by leveraging on technology through an Innovation Hub.

RBI’S BI-MONTHLY MONETARY POLICY REVIEW ON 6TH AUGUST 2020 – Highlights & Key Takeaways

The Monetary Policy Committee met on 4th, 5th and 6th August for its second meeting of 2020-21, completing four years of its operation under the new monetary policy framework. At the end of its deliberations, the MPC voted unanimously to leave the policy repo rate unchanged at 4 per cent and continue with the accommodative stance of monetary policy as long as necessary to revive growth, mitigate the impact of COVID-19, while ensuring that inflation remains within the target going forward. The Marginal Standing Facility (MSF) rate and the Bank rate remain unchanged at 4.25 per cent. The reverse repo rate stands unchanged at 3.35 per cent.

RBI”s Financial Stability Report, July 2020

Reserve Bank released the 21st Issue of the Financial Stability Report (FSR) on 24th July 2020, which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability, and the resilience of the financial system in the context of contemporaneous issues relating to development and regulation of the financial sector.