LIVE: RBI says will undo damage inflicted on economy by Covid-19 in FY21-22

RBI governor Shaktikanta Das
RBI monetary policy live updates: The Monetary Policy Committee (MPC) of the Reserve Bank of India on Friday decided to keep repo rate unchanged at 4 per cent, said Governor Shaktikanta Das. The reverse repo rate stays at 3.35 per cent, he said. On a review of monetary and liquidity conditions it was decided to restore CRR in two phases --- CRR will be raised to 3.5% from March 27 and 4% from May 22.

In a major reform, RBI proposed to provide retail investors access to government bond market, both primary and secondary, directly through the central bank. Retail investors would now have direct access to participate in the G-Sec market.

In his closing remarks, RBI governor Shaktikanta Das said, “going forward the Indian economy is poised to move in only one direction which is upwards. It is our strong conviction backed by forecasts, that in FY22 we will undo the damage that Covid-19 has inflicated the economy. After the chaos and dispair of the year gone by through which we have sailed together, we shall continue to sail ahead.”

The RBI last changed policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.

 
This was the first meeting of the six-member MPC since Finance Minister Nirmala Sitharaman presented Budget 2021 in the Lok Sabha on February 1, amid the Covid-19 pandemic.

Stay tuned for RBI Monetary policy LIVE updates


LIVE UPDATES

With gilt account scheme, we aim to provide another avenue to retail investors, says RBI guv

Q. What was the thought process behind the retail gilt account scheme? Could you also explain how retail will be defined. 
 
Ans: The thought process was mainly to provide another avenue to retail investors. As regards other details, I advise you wait for our further communication: Das  

RBI governor on PMC Bank

Q. Any decision on the three potential investors in PMC Bank? 
 
Ans: I have been informed that three final offers have been received. PMC Bank itself is evaluating the offer. They will approach us once their evaluation is over: Das

We are doing what an AQR is supposed to do: Das

We have deepened our supervision to get a clear picture of stressed or bad assets. Similarly, for banks, we are doing a deep dive and  making our own assessments. We are exactly doing what an AQR is supposed to do: Das
 

RBI Governor on stress for banks

Stress for banks: We have been collecting from banks data related to their stressed assets. We are also taking up with banks that they make provisions. Many have done that, which is a positive sign. Data is flowing to us on a daily basis. We are constantly monitoring the situation: Das
 

We have moved beyond pend-up demand. Demand will only pick up from here, says Shaktikanta Das

Are we sure that the growth projections are now driven by consumer demand and not pent-up demand?

We are tracking high-frequency indicators. All all of them indicate that demand is actual. We have moved beyond pend-up demand. Demand will only pick up from here. Demand curve is expected to be more sustained: Das
 

Our first objective is to protect our market from global spillover, says RBI Dy guv Patra

Our first objective is to protect our market from global spillover. There is a hunt for yields. There have been spikes. We are watchful of them: Patra
 

We are watchful of the forward premia rates. India continues to attract a lot of forex, says Guv Das

Forward premia rates: We are watchful of the forward premia rates. India continues to attract a lot of forex. We have taken measures as and when necessary. We would continue to do so, says Das.

Will come out with details on retail participation in G-Sec market very soon, says RBI Dy Guv Kanungo

Will come out with details on retail participation in G-Sec market very soon, says RBI Dy Guv Kanungo

RBI Governor Shaktikanta Das on Monetary policy review

Q: As regards bad banks, we thought there was going to be an ARC, but from Budget it seems it will be an AMC. What is it going to be?


A: There have been discussions between the RBI and government. We are awaiting a formal proposal from the government. It would not be right to comment before we receive it, says Guv Das.
 

Will examine comments on draft NBFC Regulations, says RBI guv

Will examine comments on draft NBFC Regulations, says RBI guv

Will come out with details on retail particpation in G-Sec market very soon, says Shaktikanta Das

Will come out with details on retail particpation in G-Sec market very soon, says Shaktikanta Das

Is there a disconnect between what the market requires and what the RBI is providing them?

Shaktikanta Das says, "Sometimes the market takes a little more time to understand our communication. But over time they appreciate our efforts more. The situation is constantly evolving."
 

What impact will the retail direct scheme have on the overall banking system?

To this, RBI governor Shaktikanta Das says, as the GDP grows and the economy comes back to a growth path, banks have several other services that they offer. So their business will not get affected. If anything, it will serve as another great avenue for investors to benefit from.
 

Focus on governance is a common feature of our supervisory and regulatory standpoint: Das

Focus on governance is a common feature of our supervisory and regulatory standpoint, says Shaktikanta Das.

HTM dispensation will help banks in view of the government's borrowing programme: Dy Guv Michael Patra

HTM dispensation will help banks in view of the government's borrowing programme: Dy Guv Michael Patra

Endeavour to make the G-sec market accessible, says RBI guv

Endeavour to make the G-sec market accessible. Yield curve is a public good for all sections," the RBI Governor said.

CRR normalisation will take place in two steps -- first in March and then in May, says RBI guv Shaktikanta Das

CRR normalisation will take place in two steps -- first in March and then in May, says RBI guv Shaktikanta Das.

With regard to 10.5% GDP growth, our inflation projection and other factors have been taken into account: Guv

With regard to 10.5% GDP growth for next year, our inflation projection and other factors have been taken into account. Accordingly an accommodative stance has been maintained.
 

MPC decision on both components of our decision -- rate and stance -- were unanimous, says Guv

MPC decision on both components of our decision -- rate and stance -- were unanimous, says Guv

RBI MPC LIVE: Overall liquidity available to banking system remains the same, says Shaktikanta Das

RBI MPC LIVE: Overall liquidity available to banking system remains the same, says Shaktikanta Das

Don't agree that yield curves are a public good only for the G-sec market, says Guv Das

Yield curve is a public good for all sections, he says.

Accommodative stance will continue into the next FY, says RBI governor Shaktikanta Das

Market has its own way of interpreting things. Have only said accommodative stance will continue into the next FY.

Macroeconomic situation is constantly evolving, says RBI Governor

Macroeconomic situation is constantly evolving, says RBI Governor Shaktikanta Das

RBI monetary policy LIVE: RBI governor's press conference begins

RBI monetary policy LIVE: RBI governor's press conference begins

LIVE: RBI says it'll undo damage inflicted on economy by Covid-19 in FY22

LIVE: RBI says it'll undo damage inflicted on economy by Covid-19 in FY22

RBI: It's our strong conviction that in FY22 we will undo the damage that Covid-19 has inflicated the economy

 RBI: It's our strong conviction that in FY22 we will undo the damage that Covid-19 has inflicated the economy

RBI monetary policy LIVE: RBI governor's press conference shortly

RBI governor Shaktikanta Das to address media shortly.

RBI supporting growth is the need of the hours, says SBI chairman

Growth impetus has been maintained in today's policy, SBI chairman Dinesh Kumar Khara to CNBC TV 18.

RBI holds interest rates steady at record lows as economic outlook improves

The Reserve Bank of India kept rates steady at record low levels and said it would maintain support for the economy's recovery from the pandemic by ensuring ample liquidity for markets to absorb a massive government borrowing programme.
 
"Going forward, the Indian economy is poised to move in only one direction and that is upwards. It is our strong conviction, backed by forecasts, that in 2021/22, we would undo the damage that Covid-19 has inflicted on the economy," Reserve Bank of India Governor Shaktikanta Das said after announcing the rate decision.
 

NBFCs to get funds under on tap TLTRO scheme for incremental lending: RBI

The Reserve Bank of India (RBI) has proposed to provide funds to non-banking finance companies (NBFCs) from banks under on tap TLTRO scheme for lending to some stressed sectors.
 
In October last year, the RBI had announced on tap targeted long term repo operations (TLTRO) scheme for banks. It had said to conduct on tap TLTRO with tenors of up to three years for a total amount of up to Rs 1 trillion at a floating rate linked to the policy repo rate. The scheme is available till March 31, 2021.

What is TLTRO or LTRO?

LTRO lets banks borrow one to three-year funds from the central bank at the repo rate, by providing government securities with similar or higher tenure as collateral.
 
Targeted Long-Term Repo Operations (TLTRO), banks can invest in specific sectors through debt instruments (corporate bonds, commercial papers, and non-convertible debentures (NCDs)) to push the credit flow in the economy.
 
It is called 'Targeted' LTRO as in this case, the central bank wants banks opting for funds under this option to be specifically invested in investment-grade corporate debt.
 
This helps banks get funds for a longer duration as compared to the short-term (up to 28 days) liquidity provided by the RBI through other tools such as liquidity adjustment facility (LAF) and marginal standing facility (MSF).

Inflation, Budget and its implications: RBI's two guiding forces on rates

The guiding forces for Friday’s monetary policy committee (MPC) decision were twofold. The first was inflation, which has been trending downwards and likely to also be lower in January. Was this sufficient a trigger for lowering rates considering that the base effect will get weaker in February and March? The second was the Budget and its implications, writes Madan Sabnavis, chief economist at CARE Ratings.

RBI MPC highlights: Rates, stance unchanged, CRR to be restored, and more


RBI invites retail investors directly to gilt market

In a major reform that will have a huge ramification in the coming days for India’s bond market and the savings habit of the nation, retail investors can now open gilt accounts with the RBI and trade in government bonds. The retail investors can take positions both in primary and secondary markets, RBI governor Shaktikanta Das said in his speech.
 
This is a game changer as far as retail participation in the bond market is concerned. Major efforts in the past failed to persuade retail investors to take positions in the government debt papers. They could do it via banks, and mutual funds, or through various indices. Read on...

Market update: Sensex, Nifty pare gain in volatile trade; Nifty PSU Bank up 5%

The Nifty Bank index hit fresh lifetime high in intra-day deals. Click here for LIVE updates

RBI Governor Shaktikanta Das on One nation, one ombudsman

One nation, one ombudsman: To make ombudsman scheme more efficient, a central integrated ombudsman scheme to be rolled out for redress of grievances from June 2021.

Indian economy poised to move in upward directly, says Shaktikanta Das

Indian economy poised to move only in one direction --- that is --- in upward directly, says Shaktikanta Das

RBI's Retail Direct facility to allow retail investors access to G-secs, both in primary and secondary markets

RBI's Retail Direct facility to allow retail investors access to G-secs, both in the primary and secondary markets; Roadmap to be announced later
 

RBI to come up with various guidelines for the MFI sector, says Governor

RBI to come up with various guidelines for the MFI sector, says Governor

Retail investors can now access primary and secondary govt bond market: RBI

Retail investors can now access primary and secondary govt bond market: RBI

Resident individuals can make remittance to IFSCs for NRIS: RBI

Resident individuals can make remittance to IFSCs for NRIS: RBI

Rs 1.53 trillion provided to meet liquidity requirements of banks: RBI

Rs 1.53 trillion provided to meet liquidity requirements of banks: RBI

Retail investors can open Gilt accounts with RBI, says Shaktikanta Das

Retail investors can open Gilt accounts with RBI, says Shaktikanta Das

Will restore CRR in 2 phases to 3.5% w.e.f March 27 and 4% w.e.f May 22, 2021: RBI

Will restore CRR in 2 phases to 3.5% w.e.f March 27 and 4% w.e.f May 22, 2021: RBI

Will form expert panel to strengthen primary urban co-op banks, says RBI

Will form expert panel to strengthen primary urban co-op banks, says RBI

Banks to be incentivised for extending new MSME loans: RBI

Banks to be incentivised for extending new MSME loans: RBI

Access to funds for banks under MSF extended by six months beyond March-end, says RBI

Access to funds for banks under MSF extended by six months beyond March-end, says RBI

Stance of liquidity mangement continues to be accommodative & in consonance with monetary policy: RBI

Stance of liquidity mangement continues to be accommodative & in consonance with monetary policy: RBI

The TLTRO on-tap scheme announced for banks earlier extended to NBFCs: RBI

The Targeted Long-Term Repo Operations (TLTRO) on-tap scheme announced for banks earlier extended to NBFCs: RBI

Will ensure the govt's Rs 12-trillion market borrowing programme in a smooth manner: RBI

RBI will ensure the govt's Rs 12-trillion market borrowing programme in a smooth manner
 

RBI has proactively taken steps to insulate domestic financial markets from global stress: Shaktikanta Das

RBI has proactively taken steps to insulate domestic financial markets from global stress and unpredictability

RBI ensured smooth transmission of its rate cuts, says Shaktikanta Das

The RBI's stance of liquidity management continues to be accommodative and will remain so as long as necessary.

RBI MPC LIVE: Projection for CPI-based inflation revised to 5.2% for Q4 of FY21

Projection for CPI-based inflation revised to 5.2% for Q4 of FY21, for H1 of FY22 at 5% to 5.2%, and for Q3 of FY22 at 4.3%
 

Do note, the repo rate was last cut in the May 2020 policy meet

Do note, the repo rate was last cut in the May 2020 policy meet

RBI Monetary policy meet LIVE updates: CPI-based inflation below 6%

  • After breaching the upper threshold continuously since June 2020, CPI-based inflation came below 6%.
  • Vegetable prices are expected to remain soft in the coming months

Projected increase in capital expenditure augur well for the economy, says RBI Guv on Budget 2021

Investment-oriented stimulus given under Atmanirbhar Bharat have begun to show results.
 

Real GDP growth projected at 10.5% in 2021-22, says Shaktikanta Das

Real GDP growth projected at 10.5% in 2021-22, says Shaktikanta Das

RBI Monetary policy meet LIVE updates: The flow of financial resources to commercial sector is increasing

FDI and FPI flows into India have increased in recent months reflecting the faith reposed in India by the world: RBI guv

RBI MPC meet: 2021 has started on a positive note with vaccination drive

2021 has started on a positive note with vaccination drive providing an impetus, says RBI guv

Consumer confidence is reviving, says RBI governor Shaktikanta Das

Consumer confidence is reviving, says RBI governor Shaktikanta Das

2020 tested our endurance, while 2021 is setting the stage for a new economic era in our history, says RBI guv

2020 tested our endurance, while 2021 is setting the stage for a new economic era in our history, says RBI guv

MPC decided to prioritise growth, says Shaktikanta Das

Given that inflation has come within the tolerance band, MPC decided to prioritise growth

Stable near-term outlook on account of inflation being in control, says Shaktikanta Das

Stable near-term outlook on account of inflation being in control, says Shaktikanta Das

RBI Monetary policy meet LIVE updates: MSF and bank rate unchanged at 4,25%

MSF and bank rate unchanged at 4,25%

RBI Monetary policy meet LIVE: Reverse repo rate unchanged at 3.35%

RBI Monetary policy meet LIVE: Reverse repo rate unchanged at 3.35%

RBI Governor Shaktikanta Das on Monetary policy review:

MPC has unilaterally decided to keep policy rate unchanged at 4%
Accommodative stance to continue for now

RBI Monetary policy meet LIVE: RBI guv to announce outcome of meet shortly

RBI Monetary policy meet LIVE: RBI guv to announce outcome of meet shortly

Market update: Sensex currently at 50,948.73; up by 334.44 points, ahead on RBI Monetary policy decision

Sensex currently at 50,948.73; up by 334.44 points. Nifty up by 96.40 points, currently at 14,992.05.

Fiscal Fears: RBI to maintain rates, accommodative stance, according to IANS poll

High fiscal deficit levels along with fears of fanning inflations will deter the Reserve Bank of India (RBI) from administering a dose of lending rate cut during the last monetary policy review of FY21.
 
In a poll conducted by IANS, economists and industry experts cited limited headroom for further monetary policy easing along with a wait of full transmission of past rate cuts as a key determinant for a pause in policy easing.
 
However, a growth-boosting accommodative stance is expected to be maintained.

Sensex, Nifty keep run going; all eyes on RBI's policy decision today

Equity indices defied gravity for the fourth straight session to close at lifetime highs on Thursday, as FMCG and banking counters saw robust demand amid encouraging quarterly earnings.
 
Participants shrugged off weak Asian cues and kept accumulating stocks ahead of the RBI’s policy decision on Friday, said traders. After touching an all-time high of 50,687.51 during the day, the Sensex ended 358.54 points or 0.71 per cent at its new closing record of 50,614.29. Read on...

How RBI plans to revive PMC Bank through a three-pronged strategy

The mechanism to revive troubled lender Punjab and Maharashtra Cooperative (PMC) Bank having entered the last leg with the deadline for a final offer from prospective suitors expiring on Monday, the Reserve Bank of India (RBI) is devising a three-pronged approach for a reconstruction of the multi-state cooperative bank.
 
If the revival formula works as planned, it will be the first time in recent years that the Deposit Insurance and Credit Guarantee Corporation (DICGC) will have been roped in for the revival of a stressed bank. Click here to read more

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