Tag: Economy

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.

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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.

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Credit flow to Micro, Small and Medium Enterprises Sector

RBI issued instructions to all the Financial Institutions including Banks, Cooperative Banks, NBFC’s and other FI’s to initiate necessary action for reclassification of enterprises as per the new definition w.e.f July 1, 2020 and issue necessary instructions to your branches/controlling offices in this regard,

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Bank Promotions – Latest Banking Updates (As on 31.05.2020)

This booklet entitled ” Latest Banking Updates – Bank Promotions (Updated as of 31.05.2020)” has been prepared with an intention to provide ‘Latest Developments in Banking and Financial Sector’ for the enrichment of Bank’s Staff, the Banking knowledge and Banking Developments taking place in present day scenario, when the entire Banking Industry is facing heavy Turbulence in the form of huge NPA and mounting losses.

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Retailers, small businesses not registered as MSME also to get guaranteed emergency credit

Retailers, small businesses not registered as MSME also to get guaranteed emergency credit.Eligible borrowers should have annual turnover up to Rs 100 crore, exposure to bank credit. Guaranteed emergency credit will be available for retailers and other businesses too even if they are not registered as Micro, Small and Medium Enterprises (MSME), a senior Finance Ministry official said.

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India may register recession in Q3 of this fiscal over Covid-19

The Indian economy is likely to slip into recession in the third quarter of this fiscal as loss in income and jobs and cautiousness among consumers will delay recovery in consumer demand even after the pandemic, says a report.Measures taken by the Reserve Bank of India, like reducing the repo rate by a further 40 basis points to 4 per cent, extending the moratorium period by three months and facilitating working capital financing will also help stimulate the momentum.

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Highlights of RBI Governor Das’ comments in an interview to Cogencis

In an hour-long interview to Cogencis, Das said even though there is an animated discussion on the subject of the central bank monetising the government’s budget deficit amidst the ongoing fight against COVID-19 pandemic, he has not taken a view on the issue.

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Finance Act 2020: Subtle yet significant changes in income-tax rules

Professional income earners can’t opt in and out of new tax regime
As the saying goes, there is many a slip between the cup and the lip. In the context of the Union Budget, there are many differences between the Finance Bill, 2020 and the Finance Act, 2020.

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Helicopter Money and Economy – How it can help tide over COVID-19 Economic Crisis

This is an unconventional monetary policy tool. It involves printing money and distributing it to the public. Milton Friedman coined this term. It basically denotes a helicopter dropping money from the sky. Friedman used the term to signify “unexpectedly dumping money onto a struggling economy with the intention to shock it out of a deep slump”.

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COVID 19 and its Impact on Global as well as Indian Economy

Things are moving fast with the COVID-19 novel coronavirus. On March 12 WHO declared that the virus is now a pandemic and President Trump announced 30 day ban on all travel from EU to the US. If the virus spread continues the Analysts fear that the Global Economy may slip into recession. If the Economy slips into recession it will slip for two consecutive quarters i.e. six months period. The Supply chains are affected. Various sectors such as Chemical, Pharmaceutical, Service, Transportation, Tourism, Hospitality industry etc will badly impacted. Digital Banking and Online Shopping will increase.

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