Why should a country need a monetary policy? Who makes it? What is the purpose of monetary policy? What are the instruments used for it? In this article, we shall learn and understand all major concepts associated with the monetary policy of India.
The Reserve Bank of India’s Monetary Policy Committee has kept the repo rate unchanged at 4 per cent. This is the seventh straight MPC, when RBI kept the rates steady. RBI Guv SHaktikanta Das said that MPC has decided to leave repo rate unchanged and continue with the accommodative stance as long as necessary to support growth. Das said that India is a much better position as compared to June 2021.
Prime Minister Shri Narendra Modi launched digital payment solution e-RUPI, a person and purpose specific digital payment solution, today via video conference. e-RUPI is a cashless and contactless instrument for digital payment.
Reserve Bank released the 23rd 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 in the context of contemporaneous issues relating to development and regulation of the financial sector.
The Reserve Bank of India today released the July 2021 issue of its monthly Bulletin. The Bulletin includes three Articles and Current Statistics.
The three articles are: I. State of the Economy; II. Monetary Policy Transmission in India: Recent Developments; and III. Drivers of Indian Pharmaceutical Exports.
Reserve Bank of India (RBI) today announced its bi-monthly monetary policy review as RBI Governor Shaktikanta Das read out Monetary Policy statement. RBI has projected India’s GDP growth at 9.5 per cent for the ongoing Financial Year of 2021-2022. RBI has kept repo rate unchanged at 4 per cent, sixth time in a row. The RBI reverse repo rate or RBI’s borrowing rate also remains unchanged at 3.35 percent. RBI has also maintained accommodative monetary policy stance to support growth and kept inflation at targeted level.
The Reserve Bank of India has set up a Regulations Review Authority (RRA 2.0), initially for a period of one year from May 01, 2021, vide press release dated April 15, 2021. The RRA will review the regulatory prescriptions internally as well as by seeking suggestions from the RBI regulated entities and other stakeholders on their simplification and ease of implementation.
Keeping in view the current COVID-19 related restrictions in various parts of the country, REs are advised that in respect of the customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021,
In view of the uncertainties created by the resurgence of the Covid-19 pandemic in India in the recent weeks, it has been decided to extend the Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs) facility for restructuring existing loans without a downgrade in the asset classification subject to the following conditions:
The resurgence of Covid-19 pandemic in India in the recent weeks and the consequent containment measures to check the spread of the pandemic may impact the recovery process and create new uncertainties. With the objective of alleviating the potential stress to individual borrowers and small businesses, a set of measures are being announced by RBI. These set of measures are broadly in line with the contours of the Resolution Framework – 1.0, with suitable modifications.