RBI MPC kees repo rate unchanged at 6.5%, inflation for FY25 at 4.5%
Reserve Bank of India (RBI) Governor Shaktikanta Das at the Monetary Policy Committee (MPC) meeting on Friday announced the policy rate unchanged at 6.5 per cent.
Reserve Bank of India (RBI) Governor Shaktikanta Das at the Monetary Policy Committee (MPC) meeting on Friday announced the policy rate unchanged at 6.5 per cent.
“The path-breaking structural reforms, such as the enactment of the Insolvency and Bankruptcy Code (IBC) and the adoption of Flexible Inflation Targeting in the recent years, have helped us to deal with the challenges in the banking system and the task of maintaining price stability more effectively,” he said.
In the throes of economic dynamism, India finds itself at the intersection of contrasting forces, with its annual retail inflation surging to a four-month high in December.
Intolerance of economic crimes is not unique to India; Bernard Madoff the mastermind of the largest known Ponzi scheme, worth an estimated $18 billion, was sentenced by a US court to 150 years in prison, making people wonder if financial fraud was worse than violent crimes like rape and murder.
The Reserve Bank of India asked banks to be more transparent in resetting interest rates and EMIs of floating-rate home loans under the external benchmark-based lending rate (EBLR) mechanism.
RBI in its Monetary Policy Report observed that the ongoing lockdown and expected contradiction in global outlook would weigh heavily on the growth outlook.
RBI governor told that sectors such as tourism, airlines, hospitality, and domestic trade and transport are suffering the loss of activity.
Those arrested are Jasvinder S. Banvait, a former bank director, and valuers Vishwanatha S. Prabhu and Shripad G. Jere from Yardi Prabhu Consultants and Valuers Pvt Ltd.
He also noted that ratio of deposit to M-CAP (market capitalisaion) is not the correct instrument for assessing the safety of banks and instead Capital to Risk (Weighted) Assets Ratio (CRAR) should be gauged.
In a bid to keep inflation under a specified level, the government in 2016 had decided to set up Monetary Policy Committee headed by RBI Governor.
