Moneycontrol's Sakshi Batra does a 3-Point Analysis to find out the reasons behind World Bank's bleak forecast
The RBI projected CPI inflation at 6.8 percent for Q2FY21, at 5.4-4.5 percent for second half of FY21 and 4.3 percent for Q1FY22, with risks broadly balanced.
The government has appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the Monetary Policy Committee.
Though institutes can allow old students to come back and sit for placements within 2-3 years of passing out, it is only meant for students who opted out of placements to pursue entrepreneurial activities. Now, many institutes are looking at special arrangements.
The RBI shows readiness to undertake further measures as necessary to assure market participants of access to liquidity and easy financing conditions.
The liquidity measures announced will further improve the liquidity conditions enabling banks, NBFCs to push lending further. But, these measures will help only when there is a pick-up in demand scenario.
RBI Monetary Policy: Here is the full text of RBI Governor Shaktikanta Das's speech
According to Das, sectors that will register the quickest recovery include Agriculture and allied activities, fast moving consumer goods, two wheelers due and passenger vehicles and tractors, drugs and pharmaceuticals, and electricity generation, especially renewables.
Exports have been adversely impacted by the pandemic-related contraction in external demand, said RBI Governor Shaktikanta Das
In 2018, the RBI had released the guidelines on co-origination of loans by banks and non-deposit taking NBFCs.
RBI Monetary Policy: Governor Shaktikanta Das announced that the central bank would conduct open market operations (OMOs) in State Development Loans (SDLs).
The RBI left key interest rates unchanged, while retaining an accommodative monetary policy stance to support the coronavirus-hit economy of India.
India’s inflation target is 4 percent, with a 2 per cent band on either side of it.
RBI Monetary Policy: Following the MPC meeting in August, Governor Shaktikanta Das had projected a negative real GDP growth in FY21.
This was the first time the central bank did not cut repo rate after previous five consecutive cuts since February 2019
In the last monetary policy review on August 6, the RBI chose inflation as its priority and kept the key lending rates unchanged at 4 percent.
Majority of experts feel the policy rates may remain unchanged given that the inflation is above the 6-percent mark
RBI Monetary Policy LIVE Updates: Central Bank keeps repo rate unchanged at 4%; maintains accomodative stance, said RBI Governor Shaktikanta Das
The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May to mitigate the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially micro, small and medium enterprises (MSMEs).
When it comes to funding, smaller MFIs have been largely left out so far. This is because banks have played safe by lending to bigger NBFCs with top ratings on account of high risk-aversion
The Union Textile Ministry in August abolished the All India Handicrafts Board and the All India Handloom Board — advisory bodies that were created to help the government in “formulation of the overall development programmes” in the handicrafts and handloom sectors, “keeping in view socio-economic cultural and artistic perspective”.
Speaking at a programme organised by the ICFAI Business School, the former Chairman of the Economic Advisory Council to the Prime Minister said banks should neither be timid nor adventurous while lending as the loans of today should not become NPAs of tomorrow.
The Food and Agriculture Organization's food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 97.9 points last month versus a downwardly revised 95.9 in August.
The multi-lateral lender forecast a record economic contraction of 7.7 percent for South Asia this year, and said workers in the informal sector were being hit hardest, and private consumption was unlikely to recover quickly from the blow.
The World Bank added that it expected growth to return to 5.4 percent in FY22, assuming COVID-19-related restrictions are completely lifted by 2022.