The Reserve Bank of India (RBI) has raised the repo rate by 50 basis points, an increase for the second time in five weeks at the conclusion of the monetary policy committee’s three-day meeting on June 8. Earlier, the monetary policy committee (MPC) had held an unscheduled meeting in early May and voted unanimously for a 40 basis point repo rate hike in anticipation of a huge increase in April inflation. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65 per cent and the marginal standing facility (MSF) rate and the bank rate to 5.15 per cent. The MPC also voted unanimously to remain focused on the withdrawal of accommodation to ensure that inflation remains within range going forward, while supporting growth.
Category: Economy
RBI launches UPI for 400 mn feature phone users to widen digital payment reach. (1) UPI123Pay – Option to make Unified Payments Interface (UPI) payments for feature phone users, and (2) DigiSaathi – a 24×7 Helpline to address the queries of digital payment users across products.
In the Statement on Developmental and Regulatory Policies announced as a part of the Bi-monthly Monetary Policy Statement for 2021-22 dated February 10, 2022, regarding review of the Credit Default Swaps (CDS) Guidelines. The draft Reserve Bank of India (Credit Derivatives) Directions, 2021 were released for public comments on February 16, 2021. Based on the feedback received from the market participants, the draft Directions were reviewed and have since been finalised. The Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022 are enclosed herewith.
The Reserve Bank of India released the January 2022 issue of its monthly Bulletin which includes two speeches, four articles and current statistics. The four articles are: I. State of the Economy; II. Indian Agriculture: Achievements and Challenges; III. The Impact of Covid-19 Pandemic on Consumer Confidence in India; and IV. Changing Dynamics of Foreign Direct Investment in India.
FM Nirmala Sitharaman presented Union Budget 2022 in Parliament. While keeping the Income Tax Slabs unchanged, FM announced a major change in taxation as far as virtual digital assets are concerned. Union Finance Minister Nirmala Sitharaman proposed a 30 per cent tax on income from transactions in such assets. Furthermore, FM Also proposed Gati Shakti Programme which will boost infrastructure and create more jobs. On education sector, FM has announced launch of a new Digital University as well as expansion of PM eVIDYA with addition of new TV channels for supplementary education.
The Economic Survey 2021-22 was tabled in Parliament on Monday by Finance Minister Nirmala Sitharaman soon after the President’s address to both Houses of Parliament. The survey, presented a day before the Union Budget, underlines the state of the economy and outlines suggestions for policy actions.
Reserve Bank released the 24th issue of the Financial Stability Report (FSR), 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.
Reserve Bank of India on Thurday extended card tokenisation deadline by six months to June 30, 2022. The earlier deadline was December 31, 2021. Post June 30, 2022, merchants will not be able to store card information of users and will have to replace each card number with a randomised token number.
While discussing the changing vision of the Indian Banking industry, Mr M.V.Tanksale expressed with pride that the banking industry has withstood various crises and transformed itself to meet the challenges and contribute to the economic growth of the country.
The Reserve Bank of India’s (RBI’s) six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, decided to maintain key interest rates for a ninth straight meeting, retaining an accommodative stance amid the threat surrounding Omicron coronavirus variant.