How effective such a rate cut would be in bringing about the desired increase in private investment, however, remains to be seen
Speaking at the Global Business Summit here, he said the announcements made in three to four months ahead of elections or after the elections are “aberrations” and focus must be in long term direction of policies.
The RBI had last month come out with the guidelines stipulating that from April 2019, minimum 40 percent of fund- based limits of a borrower is required to be structured in the form of a 'loan component' with a fixed maturity.
But the system-wide impact of this will be limited, as there were masala bonds and foreign-currency debt issuances recently with a minimum average maturity of 10 years, global rating agency Fitch said on Friday.
Engineering Exports Promotion Council (EEPC) said there was a sharp annualised drop of over 54 percent in the gross bank credit deployment in the export sector.
A day after the RBI announced a one-time loan restructuring scheme for the MSME sector, Das in a tweet said, "Will hold meetings with MSME associations and representatives of NBFCs next week."
The economic principles, moreover, say savings should not be used for current consumption, but for long-term investment, he said on Thursday.
"...with a view to building up adequate reserve to guard against market risks, henceforth, all co-operative banks shall build IFR out of realized gains on sale of investments, and subject to available net profit," the RBI said in a recent notification.
On Tuesday, the central bank had announced a Rs 1,000 -crore OMO , where it is buying five government securities.
On March 21, the central bank had announced the schedule of the bi-monthly MPC meetings for the entire fiscal year 2018-19.
"Minutes (of the monetary policy committee) suggest that a back-ended rate hike in 2018 remains a possibility, if headline inflation exceeds the trajectory set out by the MPC," domestic rating agency Icra said in a note.
According to BofA Merrill Lynch Global Research report, RBI will follow an asymmetric forex policy of buying forex when the USD is weakening and allowing Rs 65-66/USD when it strengthens.
In a note that comes a day after reports of currency shortages made national headlines, it depended on nominal economic growth, currency with the public and the rise in digital transactions to arrive at the shortfall estimate.
Amidst rising bad loans, which have corssed 10 per cent of the system, the Reserve Bank had on February 12 released a revised framework on bad loan resolution, under which banks will have to disclose defaults even if the interest repayment is overdue by just one day and have to a resolution plan in place within 180 days.
"If the RBI tightens the monetary policy to follow its dharma (duty), then we can compensate for that through fiscal policy. There is a need for cooperation, there is a need to have a macro-economic team in our country so that everybody works together," he said while speaking at a book release event here.
The LRS transactions are currently permitted by banks based on the declaration made by the remitter.
During the month, the central bank bought USD 3.320 billion, while it sold USD 1.655 billion in the spot market, according to the latest RBI data.
The total debt limit will rise to Rs 5,94,600 crore by September 2018 and go up further to Rs 6,49,900 crore by end of the fiscal year from the present Rs 5,45,823 crore, a central bank notification said.
Previously, the reserves had touched a record high of USD 421.914 billion on February 9. It had crossed the USD 400-billion mark for the first time in the week to September 8, 2017, but has since been fluctuating.
This would also be the first monetary policy announcement after the Budget, which has slightly deviated from the fiscal consolidation roadmap.
The central bank said the provisioning for each of these quarters may be spread equally over up to four quarters, commencing with the quarter in which the loss was incurred.
According to the global financial services major, although India's economic growth is on an uptrend, recovery remains in an early stage, and this warrants a neutral stance.
The move, directed at foreign banks with over 20 branches will impact the likes of Standard Chartered, Citi and HSBC, which much higher branch presence, and will come into force from the next financial year.
The Monetary Policy Committee has kept the key policy rates unchanged including the repo rates at 6 percent while the reverse repo was at 5.75 percent.
In the month, the central bank purchased USD 2.570 billion from the spot market and sold USD 1.706 billion, according to the latest RBI data released today.