During the reporting week, the surge in the forex kitty was mainly on account of an increase in foreign currency assets (FCA), a major component of the overall reserves.
The RBI says the green shoots seen in the July-September quarter were fraught with ‘downside risk’ as India was yet to see a sustained reduction in CCOVID-19 cases
The reconstituted MPC, which met from October 7 to 9, had decided to keep the benchmark lending rates unchanged in view of the hardening of retail inflation.
The meeting, which was held through video conferencing, also deliberated on the issues concerning financial stability in the present context.
The RBI further said that it would be incumbent upon such HFCs whose NOF currently stands below Rs 20 crore to submit a statutory auditor's certificate to the central bank within a month evidencing compliance with the prescribed levels.
All banks eligible under the Liquidity Adjustment Facility (LAF) can participate in the scheme.
"We are almost at the doorstep of revival process and it's very important that the financial entities have adequate capital (to support growth)," Das said.
Finance Minister Nirmala Sitharaman also said the Centre would come out with fresh growth and budgetary estimates for the COVID-19 pandemic-hit 2020-21.
As per a notification issued by the RBI, new housing loans will attract a risk weight of 35 percent where LTV is less than 80 percent and a risk weight of 50 percent where LTV is more than 80 percent but less than 90 percent.
The information collected in the survey includes quantitative data on new orders received during the reference quarter, backlog of orders at the beginning of the quarter, pending orders at the end of the quarter, and total inventories with a breakup between work-in-progress and finished goods inventories.
In June and May, the RBI had bought $9.814 billion and $4.363 billion, respectively, on a net basis.
Banks & NBFCs are expected to be one of the key beneficiaries of lower interest rates, but experts suggest to remain invested with sector leaders.
The government has appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the Monetary Policy Committee.
The RBI’s decision to purchase state bonds in the secondary market through open market operations will provide a boost to the states’ finances at a time when they, just like the centre, are having to deal with a massive revenue crunch and rising expenditure commitments
Exports have been adversely impacted by the pandemic-related contraction in external demand, said RBI Governor Shaktikanta Das
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.
RBI Monetary Policy: Following the MPC meeting in August, Governor Shaktikanta Das had projected a negative real GDP growth in FY21.
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.
RBI Monetary Policy LIVE Updates: Central Bank keeps repo rate unchanged at 4%; maintains accomodative stance, said RBI Governor Shaktikanta Das
The coverage of the scheme is limited to all term loans and working capital to the extent of Rs 100 lakh. The scheme provides for an interest relief of two percent per annum to eligible MSMEs.
Moneycontrol takes a look at the work and fields of research of Ashima Goyal, Shashanka Bhide and Jayanth Verma
With regards to the members of MPC, the RBI Act states that a person cannot be in the panel if they have a material conflict of interest with the RBI and are unable to resolve such conflict.
The RBI has by and large been successful in keeping inflation within the mandated 2-6 percent range. But the flexible inflation targeting policy has faced criticism recently on account of the high weighting given to food items in the inflation basket which have proven highly volatile.
A bank mentioned in the Second Schedule of the Reserve Bank of India Act is known as 'Scheduled Commercial Bank'. These six banks merged with other public sector banks (PSBs) with effect from April 1.