The RBI Governor today has announced the Monetary Policy. Check all Updates below:
Repo and Reverse Repo Rate
Reserve Bank of India’s Monetary Policy Committee (MPC) has kept repo rate unchanged at 4%, reverse repo maintained at 3.35%
The RBI last changed policy rate on May 22.
24*7 RTGS
The money transfer tool RTGS facility will be made 24×7, said, governor Das.
Also the settlement of AMPS, NFS, Rupay and UPI transactions will be allowed on all days of the week against five days of the week earlier.
He also proposed to enhance limits for contactless payments from Rs 2,000 to Rs 5,000 at the discretion of the user from January.
GDP
Gross Domestic Product (GDP) is projected to contract 7.5 percent in 2020-21, as against an earlier estimate of a contraction of 9.5 percent.
CPI Inflation
The Consumer Price Index (CPI) inflation is forecast at 6.3 percent in Q3FY21, and 5.8 percent in Q4.
For H1FY22, projected CPI inflation is seen at 5.2-4.6 percent with balanced risk.
No dividend
The banking regulator has informed commercial and co-op banks to not give out dividends this year and retain all the profits.
NBFC
For Non Banking Financial Companies RBI will put a criteria for declaration of dividends and for regulatory regime will be reviewed to take a scale-based approach.
For the overall financial sector, the RBI will introduce risk-based internal audits in large urban co-operative banks and NBFCs.
The RBI will also issue Digital Payments Security Control Directions.
And they will also form a comprehensive mechanism for complaints against lenders.
Bond Market
The RBI governor said that the corporate bond spreads have narrowed to pre-covid levels.
He said that the overall market conditions have evolved in an orderly manner and bond issuances have strengthened for the ones having strong credit ratings.
Stock Market Impact
The benchmark indices on BSE and National Stock Exchange (NSE) record a new highs following the announcement by the RBI governor.
The S&P BSE Sensex touched the 45,000-mark for the first time ever to touch 45,023.79, while the broader Nifty 50 touched its fresh high at 13,248.25 during the intraday trade on Friday.
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