Budget 2018-19

  Repo rate and the reverse repo rate remain unchanged at 4% and 3.35% The Reserve Bank of India’s monetary policy committee kept key interest rates unchanged, while retaining an accommodative stance to help revive the economy, which is facing a slowdown due to the coronavirus pandemic. Repo rate and the reverse repo rate remain unchanged at 4 per cent and 3.35 per cent, respectively, said RBI Governor Shaktikanta Das in a statement on Friday after a three-day meeting of the committee in Mumbai. The RBI lowered its full year 2021/22 retail inflation projection to 5.3 per cent from 5.7 per cent, saying the inflation trajectory has turned out to be more favourable than expected. It maintained its full-year economic growth forecast at 9.5%. “We derive comfort from the fact that the inflation trajectory is turning out to be more favourable than anticipated,” Das said. “In spite of global headwinds, we hope to emerge from the storm and sail towards normal times steered by the underlying...

  The Reserve Bank of India will aim to drain 2 trillion rupees ($27.3 billion) of banking funds via a 14-day reverse repo operation on Jan. 15 Finance News : India’s key money-market rates and yields on short-term debt are set to rise after the central bank took its first small step to unwind emergency pandemic measures. The Reserve Bank of India will aim to drain 2 trillion rupees ($27.3 billion) of banking funds via a 14-day reverse repo operation on Jan. 15, the central bank said in a statement late Friday. This is the first move in a phased normalization of the central bank’s liquidity operations, it said. There has been growing consensus among traders that the RBI will have to start draining excess cash, as surging liquidity caused money-market rates to drop below the central bank’s interest-rate corridor and distort asset pricing. Quantum Asset Management Ltd. and IDFC Asset Management Ltd. have been among those forecasting that short-end rates will rise faster than the long...

  ATMs to be operational from today The administrator for Lakshmi Vilas Bank (LVB), appointed by the Reserve Bank of India (RBI), assured depositors on Wednesday that the bank had enough liquidity and that he was confident the moratorium would be lifted by December 16 and that withdrawal limits would also go away by then. “There is no need to panic, every single rupee of customers is safe,” administrator T N Manoharan said a day after the 94-year old private sector lender was put under moratorium and the RBI proposed to merge it with DBS Bank’s less than two-year-old India subsidiary. “There is no cash crunch. ATMs will be operational from Thursday. Gradually everything is getting relaxed, the system is getting re-calibrated in order for customers to be able to withdraw by factoring in the cap, and is expected to be operational by Thursday,” said Manoharan. Priority was to help customers to be able to withdraw within the permissible limits of Rs 25,000 per month, he said. LVB’s dep...

  About two thirds of states opt for RBI-window of Rs 1.10 trillion, rest still want the Centre to borrow instead The Goods and Services Tax (GST) Council meeting on compensation for the states remained inconclusive on Monday, with 20-21 states opting for the Reserve Bank of India (RBI) window of Rs 1.10 trillion (earlier it was Rs 97,000 crore) and around 10 states insisting the Centre borrow and disburse the money. The next meeting is now scheduled for October 12. “The question was 20-21 states deciding to opt for the first option (the RBI window) and others wanting the Centre to borrow. Lots of discussion happened on that … Bihar Deputy Chief Minister Sushil Modi suggested that 3-4-5 days be given to the states to discuss the issue. I gave eight days and the next meeting will happen on October 12,” Union Finance Minister Nirmala Sitharaman said after the meeting. She said no state, irrespective of its choice, would be denied compensation. In her answer to a question, she said sh...