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RBI monetary policy Live updates: Shaktikanta Das takes RTGS, NEFT facilities beyond banks – The Economic Times


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How RBI plans to ringfence India from a second surge

  • RBI has allowed fintech cos, payment companies to be a part of centralised payment systems – RTGS and NEFT
  • WMA limit for state and UTs increased 46% to Rs 47,010 crore
  • RBI enhances the maximum end-of-day balance limit for payment banks from Rs 1 lakh/individual to Rs 2 lakh with immediate effect
  • RBI extends the deadline for TLTRO on-tap liquidity scheme to September 30, 2021 from March 31
  • RBI announces Rs 50,000 crore additional liquidity facility to NABARD, NHB and SIDBI for fresh lending during 2021-22
  • The central bank proposed to constitute a committee to comprehensively review the functioning of asset reconstruction companies
  • RTGS and NEFT membership to be allowed for non-bank payment institutions.
  • RBI proposed to make interoperability of full-KYC prepaid payment instruments mandatory.
  • Proposal to enhance outstanding deposits in full KYC PPIs from Rs 1 lakh to Rs 2 lakh.

RBI’s projections

  • GDP growth is projected at 10.5% in FY 2021-22
  • Repo rate unchanged at 4%, maintains accommodative stance; Reverse repo rate stands at 3.35%
  • Bank rate unchanged at 4.25%
  • MSF rate unchanged at 4.25%
  • Inflation projection: 5% in Q4 of FY 2021; 5.2% in first half of FY2022; down to 4.4% in Q3 and 5.1% in Q4

RBI to ensure orderly conduct of government borrowing; preserve financial stability: RBI Governor

NEFT facilities extended to digital payments intermediaries, beyond banks

Central Bank to ensure ample liquidity in system so that productive sector gets adequate credit.

– RBI Governor

Maximum end of day balance for payment banks doubled to Rs 2 lakh

Mfg firms optimistic on demand picking up in FY22: RBI Governor

Rural demand buoyant, urban demand gained traction: RBI Governor

Global recovery helped by vaccination, loose monetary policies

– RBI Governor

Prospects to FY22 have strengthened with vaccination programme

– RBI Governor

Focus should be on containing fresh infection spread and economic revival

– RBI Governor

Recent surge in COVID-19 infections has created uncertainty over economic growth recovery

– RBI Governor

Inflation projection: 5% in Q4 of FY 2021; 5.2% in first half of FY2022; down to 4.4% in Q3 and 5.1% in Q4

GDP growth is projected at 10.5% in Financial Year 2021-22

RBI Governor says the central bank will remain accommodative as long as necessary to sustain growth on a durable basis

MSF rate unchanged at 4.25%

Bank rate unchanged at 4.25%

RBI keeps repo rate unchanged at 4%, maintains accommodative stance; Reverse repo rate stands at 3.35%

Shares inch up ahead of central bank rate decision

Indian shares inched higher on Wednesday, ahead of a central bank decision that could leave interest rates at record lows, as a second surge in domestic coronavirus cases sparked fears about the impact on economic growth.

What are investors eyeing on?

Investors will be keeping an eye on the central bank’s liquidity stance to support the economy in relation to rising COVID-19 cases and inflation forecasts amid a rise in global commodity prices, especially crude oil.

The Monetary Policy Committee is likely to maintain that growth needs consistent firm traction and continued policy support is crucial for a durable growth revival.

– Emkay Global Financial Services said in a preview note

RBI has been working to bring onshore the trade-in rupee derivatives; measures to deepen this market likely to be taken

RBI expected to unveil guidelines to facilitate some measures announced by FM in Union Budget

One of these measures is the creation of a National Asset Reconstruction Company (ARC) by public sector banks. Since the RBI is not in favour of revising rules based on ownership, it is likely to rejig the norms for ARCs.

RBI Governor Shaktikanta Das’s Monetary Policy statement at 10:00am

RBI to infuse liquidity through combination of bond purchases, LTRO: Report

A research report by Bank of America Securities said it expects the RBI to infuse liquidity through a combination of bond purchases, long-term repo operations and by allowing banks to hold more bonds to maturity.

Bond investors will be watching how active RBI is with its version of yield curve control

(Source: Bloomberg)

Policy makers likely to reiterate that fighting price pressures will be a top priority

Economists in a Bloomberg survey saw CPI at 5% in April-June period before easing to 4.7% in the next three months. (Source: Bloomberg)

Policy makers likely to reiterate that fighting price pressures will be a top priority

While Das has indicated no immediate threat to RBI’s growth forecast, he could flag downside risks

In February, the RBI said it expects the economy to expand 10.5% in the year that began April 1 after an estimated 7.7% contraction in the previous 12 months. (Source: Bloomberg)

While Das has indicated no immediate threat to RBI's growth forecast, he could flag downside risks

30 economists surveyed by Bloomberg expect MPC to keep benchmark repurchase rate unchanged at 4%

Traders will watch for an explicit forward guidance from RBI on how long the policy stance will stay accommodative and liquidity abundant despite stubborn inflation.

As the RBI contemplates an exit from its highly accommodative monetary policy conditions, it will need to step up its communication game to ensure markets are on board with its programme.

– Rahul Bajoria, economist at Barclays

An ET poll of 12 economists/investors shows repo rate would be maintained at 4%, all other rates would move in tandem

An ET poll of 12 economists/investors shows repo rate would be maintained at 4%, all other rates would move in tandem

Policy repo rate or the short-term lending rate is currently at 4%, and reverse repo rate 3.35%

RBI Governor Shaktikanta Das headed six-member MPC is scheduled to meet from April 5 to 7

RBI MPC: Key things to know

  • Investors want clarity from Governor Shaktikanta Das on his agenda for bond markets, which have been roiled by hardening yields
  • New curbs on businesses and a surge in commodity prices could cause an inflationary spiral, which poses a challenge to the MPC
  • While forward guidance has been accommodative, conflicting messages have left markets scrambling
  • The MPC is tasked with keeping the Consumer Price Index in the 2% to 6% range for another five years

In Bijapur attack, 24 security personnel lost lives, 31 injured and 1 in our custody. 4 People’s Liberation Guerrilla Army personnel lost lives. Ready to negotiate with govt, they can announce mediators. Will release him. Police Jawans not our enemies.

– Communist Party of India (Maoist)

Mukhtar Ansari brought to UP late in night, says Satya Prakash Sharma

We were tasked to bring him (gangster-turned-politician Mukhtar Ansari) here (to Banda jail). He was brought here late in the night, as per Satya Prakash Sharma, CO Sadar. The BSP MLA was ferried in an ambulance amidst tight security from Punjab’s Rupnagar jail to Uttar Pradesh.

Swiggy raises $800 million at $5 billion valuation, ready to take on rival Zomato

7-year-old Indian gymnast breaks world record for most forward walkovers in 1 minute

PM Modi to interact with students, teachers, parents at ‘Pariksha Pe Charcha’ today

US government won’t issue ‘vaccine passports’, says White House

Gangster-turned-politician Mukhtar Ansari brought back to UP’s Banda jail from Punjab prison





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