Former Reserve Bank of India governor Shaktikanta Das was on Saturday appointed the second Principal Secretary to Prime Minister Narendra Modi. P K Mishra, a retired IAS officer of the Gujarat cadre, is currently serving as the Principal Secretary to the prime minister.According to an official order, the tenure of Das, a retired IAS officer of the Tamil Nadu cadre, will be "co-terminus" with the term of the prime minister or until further orders, whichever is earlier.
This is the first time that two persons will simultaneously serve as principal secretaries to the prime minister. Both Mishra and Das are from Odisha. "The Appointments Committee of the Cabinet has approved the appointment of Shri Shaktikanta Das, IAS (Retired), as Principal Secretary-2 to Prime Minister with effect from the date he assumes the office. His appointment will be co-terminus with the term of the Prime Minister or until further orders, whichever is earlier," the order said.
Sixty-eight-year old Das has been a career civil servant with over 44 years of distinguished service, primarily in the areas of finance, taxation, investment and infrastructure. He was the central government's revenue secretary. During his tenure as economic affairs secretary in 2016, the Modi government had announced the demonetisation. Das played a key role when multiple indirect taxes were merged into one GST, which came into effect on July 1, 2017. Post-retirement, he was appointed as a member of the 15th Finance Commission and G20 Sherpa of India.
Das became the 25th governor of the RBI in 2018 after Urjit Patel resigned. Initially appointed for three years, his tenure was extended for a further period of three years in 2021. He demitted office in December 2024 when Sanjay Malhotra was appointed as RBI governor.
Das was the second longest serving governor of the RBI in its 90-year history after Benegal Rama Rau, who had a seven-and-a-half-year tenure in the 1950s.&nbsp;Das, a 1980-batch IAS officer, holds a Master's degree in history from Delhi's St Stephen's College and a postgraduate degree in public administration from the University of Birmingham.
As the RBI governor, he focused on maintaining financial stability, curbing inflation and promoting economic growth. He took several measures to address the liquidity crunch in the non-banking financial sector and took steps to strengthen the regulatory framework for banks and non-banking financial companies. Das is credited with navigating the RBI's economic policies through the Covid pandemic. As a key economic policymaker, he faced challenging times in managing the disruptions caused by the lockdown. He chose to cut the policy repo rate to a historic low of 4 per cent, continuing with the low-interest rate regime for almost two years to help the economy hit badly by the lockdown.
During his tenure, the RBI handed over the highest-ever dividend of Rs 2.11 lakh crore to the Centre for 2023-24. He was also conferred with the 'Central Bank Governor of the Year' award by Central Banking, UK.
Das had also served as India's Alternate Governor in the World Bank, Asian Development Bank (ADB), New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB). He represented India in several international fora like the IMF, G20, BRICS and SAARC. Mishra, who was Union agriculture secretary, has been serving as Principal Secretary to the prime minister since September 2019. Prior to his current assignment, he had served as additional principal secretary to PM Modi during his first term.
<div data-olk-copy-source="MessageBody">Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.</div>

Former RBI governor Shaktikanta Das, a retired IAS officer, appointed principal secretary-2 to prime minister

Former Reserve Bank of India governor Shaktikanta Das was on Saturday appointed the second Principal Secretary to Prime Minister Narendra Modi. P K Mishra, a retired IAS officer of the Gujarat cadre, is currently serving as the Principal Secretary to the prime minister.According to an official order, the tenure of Das, a retired IAS officer of the Tamil Nadu cadre, will be "co-terminus" with the term of the prime minister or until further orders, whichever is earlier. This is the first time that two persons will simultaneously serve as principal secretaries to the prime minister. Both Mishra and Das are from Odisha. "The Appointments Committee of the Cabinet has approved the appointment of Shri Shaktikanta Das, IAS (Retired), as Principal Secretary-2 to Prime Minister with effect from the date he assumes the office. His appointment will be co-terminus with the term of the Prime Minister or until further orders, whichever is earlier," the order said. Sixty-eight-year old Das has been a career civil servant with over 44 years of distinguished service, primarily in the areas of finance, taxation, investment and infrastructure. He was the central government's revenue secretary. During his tenure as economic affairs secretary in 2016, the Modi government had announced the demonetisation. Das played a key role when multiple indirect taxes were merged into one GST, which came into effect on July 1, 2017. Post-retirement, he was appointed as a member of the 15th Finance Commission and G20 Sherpa of India. Das became the 25th governor of the RBI in 2018 after Urjit Patel resigned. Initially appointed for three years, his tenure was extended for a further period of three years in 2021. He demitted office in December 2024 when Sanjay Malhotra was appointed as RBI governor. Das was the second longest serving governor of the RBI in its 90-year history after Benegal Rama Rau, who had a seven-and-a-half-year tenure in the 1950s. Das, a 1980-batch IAS officer, holds a Master's degree in history from Delhi's St Stephen's College and a postgraduate degree in public administration from the University of Birmingham. As the RBI governor, he focused on maintaining financial stability, curbing inflation and promoting economic growth. He took several measures to address the liquidity crunch in the non-banking financial sector and took steps to strengthen the regulatory framework for banks and non-banking financial companies. Das is credited with navigating the RBI's economic policies through the Covid pandemic. As a key economic policymaker, he faced challenging times in managing the disruptions caused by the lockdown. He chose to cut the policy repo rate to a historic low of 4 per cent, continuing with the low-interest rate regime for almost two years to help the economy hit badly by the lockdown. During his tenure, the RBI handed over the highest-ever dividend of Rs 2.11 lakh crore to the Centre for 2023-24. He was also conferred with the 'Central Bank Governor of the Year' award by Central Banking, UK. Das had also served as India's Alternate Governor in the World Bank, Asian Development Bank (ADB), New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB). He represented India in several international fora like the IMF, G20, BRICS and SAARC. Mishra, who was Union agriculture secretary, has been serving as Principal Secretary to the prime minister since September 2019. Prior to his current assignment, he had served as additional principal secretary to PM Modi during his first term. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Shaktikanta Das, former RBI governor, appointed principal secretary to PM Modi

Revenue Secretary Sanjay Malhotra steps in to replace Shaktikanta Das as the new governor of the Reserve Bank of India. Malhotra is an IAS officer of the 1990 Rajasthan cadre with a career spanning over 33 years. His expertise includes finance and taxation.

His appointment, however, comes at a challenging time for the economy. 
 
The headline consumer price index inflation surged to 6.2 per cent in October, exceeding the RBI’s upper tolerance limit. A sharp uptick in food inflation drives this rise. At the same time, economic growth has slowed. 
 
India’s real GDP growth for the second quarter fell to 5.4 per cent, well below the RBI’s estimate of 7 per cent. The RBI’s monetary policy committee has revised its inflation forecast upward to 4.8 per cent and cut the GDP growth forecast to 6.6 per cent from the previous 7.2 per cent. 
 
Malhotra’s immediate priorities will be controlling inflation and supporting growth in a weakening economic environment. The new RBI governor faces a delicate balancing act. 
 
Private consumption and investments have decelerated, even though government spending shows signs of recovery. Economists highlight the near-term outlook is challenging, with downside risks to growth and upside risks to inflation.

Beyond inflation control, Sanjay Malhotra will need to focus on financial stability and prudential regulations to protect the banking system from emerging risks. 
 
With India’s foreign exchange reserves witnessing an eight-week decline, and the rupee under pressure from foreign investor outflows, management of the external sector will also be critical. Beyond macroeconomic stability, the RBI’s role in advancing financial system resilience and innovation is paramount. 
 
Sanjay Malhotra inherits the task of strengthening regulations, managing liquidity conditions, and enhancing protection against cyber risks. He will oversee ongoing reforms, including the transition to the expected credit loss regime and revising liquidity coverage ratio norms to adapt to digital banking trends.

Ensuring the financial system remains robust and adaptable will be crucial for sustaining economic confidence and growth.

(With inputs from the agencies)

Revenue Secretary Sanjay Malhotra steps in to replace Shaktikanta Das as the new governor of the Reserve Bank of India. Malhotra is an IAS officer of the 1990 Rajasthan cadre with a career spanning over 33 years.

Revenue Secretary Sanjay Malhotra steps in to replace Shaktikanta Das as the new governor of the Reserve Bank of India. Malhotra is an IAS officer of the 1990 Rajasthan cadre with a career spanning over 33 years. His expertise includes finance and taxation. His appointment, however, comes at a challenging time for the economy. The headline consumer price index inflation surged to 6.2 per cent in October, exceeding the RBI’s upper tolerance limit. A sharp uptick in food inflation drives this rise. At the same time, economic growth has slowed. India’s real GDP growth for the second quarter fell to 5.4 per cent, well below the RBI’s estimate of 7 per cent. The RBI’s monetary policy committee has revised its inflation forecast upward to 4.8 per cent and cut the GDP growth forecast to 6.6 per cent from the previous 7.2 per cent. Malhotra’s immediate priorities will be controlling inflation and supporting growth in a weakening economic environment. The new RBI governor faces a delicate balancing act. Private consumption and investments have decelerated, even though government spending shows signs of recovery. Economists highlight the near-term outlook is challenging, with downside risks to growth and upside risks to inflation. Beyond inflation control, Sanjay Malhotra will need to focus on financial stability and prudential regulations to protect the banking system from emerging risks. With India’s foreign exchange reserves witnessing an eight-week decline, and the rupee under pressure from foreign investor outflows, management of the external sector will also be critical. Beyond macroeconomic stability, the RBI’s role in advancing financial system resilience and innovation is paramount. Sanjay Malhotra inherits the task of strengthening regulations, managing liquidity conditions, and enhancing protection against cyber risks. He will oversee ongoing reforms, including the transition to the expected credit loss regime and revising liquidity coverage ratio norms to adapt to digital banking trends. Ensuring the financial system remains robust and adaptable will be crucial for sustaining economic confidence and growth. (With inputs from the agencies)

New RBI governor faces inflation and growth balancing act

India's Revenue Secretary Sanjay Malhotra will be the next governor of the Reserve Bank of India (RBI), the central government said in a notification on Monday (Dec.

India's Revenue Secretary Sanjay Malhotra will be the next governor of the Reserve Bank of India (RBI), the central government said in a notification on Monday (Dec. 9). The notification said that Malhotra will be the RBI governor for three years starting from Wednesday (December 11). He would be replacing Shaktikanta Das, whose tenure comes to an end on Tuesday. Malhotra will be the 26th governor of the RBI. Who is Sanjay Malhotra? Sanjay Malhotra is an officer of the Indian Administrative Services (IAS). He is a 1990 Batch Rajasthan Cadre IAS Officer. Malhotra did his undergraduate studies in computer science engineering at the prestigious Indian Institute of Technology (IIT), Kanpur. Appointments Committee of the Cabinet has appointed Revenue Secretary Sanjay Malhotra as the next Governor of the Reserve Bank of India for a three-year term from 11.12.2024 pic.twitter.com/4UfunEGEuH — ANI (@ANI) December 9, 2024 × Following this, he pursued a master's degree in public policy from Princeton University in the United States (US). Malhotra, a 1990 batch IAS officer from the Rajasthan cadre, has been serving as the revenue secretary since December 2022. A report by Business Today said that as revenue secretary, Malhotra played an important role in formulating tax policies for both direct and indirect taxes. He had also served as the ex-officio secretary of the GST (Goods and Services Tax) Council, the body responsible for managing the GST framework in the country. The outgoing RBI Governor, Shaktikanta Das, was appointed in 2018, succeeding Urjit Patel. (With inputs from agencies)

Revenue Secretary Sanjay Malhotra appointed governor of India's central bank RBI

The Reserve Bank of India, in a fine balancing act between boosting growth and reigning in inflation, came up with several measures on Friday. This comes amid high inflation and a shocking slowdown in the economic growth of the country in the previous quarter.&nbsp;

The RBI kept its key repo rate unchanged for the eleventh consecutive time at 6.5 per cent. The central bank, though, cut the Cash Reserve Ratio, or the CRR, which is a percentage of money parked with the RBI that banks lend.&nbsp;

This was the first cut to CRR since April 2020 and was made to infuse more liquidity into the system through bank lending. The raised its inflation forecast for this year to 4.8 per cent from 4.5 per cent previously. At the same time, the central bank cut its growth projections 6.6 per cent from the earlier 7.2 per cent.&nbsp;

However, despite lowering the growth outlook, RBI governor Shaktikanta Das said the slowdown had already bottomed out in the September quarter. Das said the near-term inflation had turned adverse since October, citing high food price pressures. As such, the RBI maintained its neutral policy stance again.&nbsp;

Adhil Shetty, Co-Founder and CEO of Bankbazaar.com, calling RBI's decision a fine job of balancing inflation controls with economic growth, said, "The RBI cutting the CRR by 50 BPS for the first time since April 2020 signals the direction of monetary policy. And while key policy rates are unchanged for the 11th straight time, the stars are aligning for a potential rate cut in February. Shetty added, "We still need to look at the global trends as inflation remains volatile. The RBI has done a fine job of balancing inflation controls with economic growth."&nbsp;

In other measures, the RBI increased the deposit ceiling for non-resident Indians to support a record-weak rupee. Despite the Rupee's fall to repeated all-time lows, Das said the currency remains stable compared to the country's emerging market peers against a resurgent Dollar.&nbsp;

To further develop the interest rate derivatives market in India and improve the credibility of interest rate benchmarks, the reserve bank proposes to introduce a new benchmark - the Secured Overnight Rupee Rate (SORR). This is based on all secured money market transactions.&nbsp;

RBI governor Das also said central banks were put to test amid geopolitical tensions and financial market volatility over the last year. However, he said the health of the financial sector was at its best, with the financial parameters of banks and NBFCS pointing to strength and resilience.&nbsp;

Separately, the governor announced that the RBI will set up a committee of experts to suggest a framework for the responsible and ethical use of artificial intelligence.&nbsp;

The Reserve Bank of India, in a fine balancing act between boosting growth and reigning in inflation, came up with several measures on Friday. This comes amid high inflation and a shocking slowdown in the economic growth of the country in the previous quarter.

The Reserve Bank of India, in a fine balancing act between boosting growth and reigning in inflation, came up with several measures on Friday. This comes amid high inflation and a shocking slowdown in the economic growth of the country in the previous quarter. The RBI kept its key repo rate unchanged for the eleventh consecutive time at 6.5 per cent. The central bank, though, cut the Cash Reserve Ratio, or the CRR, which is a percentage of money parked with the RBI that banks lend. This was the first cut to CRR since April 2020 and was made to infuse more liquidity into the system through bank lending. The raised its inflation forecast for this year to 4.8 per cent from 4.5 per cent previously. At the same time, the central bank cut its growth projections 6.6 per cent from the earlier 7.2 per cent. However, despite lowering the growth outlook, RBI governor Shaktikanta Das said the slowdown had already bottomed out in the September quarter. Das said the near-term inflation had turned adverse since October, citing high food price pressures. As such, the RBI maintained its neutral policy stance again. Adhil Shetty, Co-Founder and CEO of Bankbazaar.com, calling RBI's decision a fine job of balancing inflation controls with economic growth, said, "The RBI cutting the CRR by 50 BPS for the first time since April 2020 signals the direction of monetary policy. And while key policy rates are unchanged for the 11th straight time, the stars are aligning for a potential rate cut in February. Shetty added, "We still need to look at the global trends as inflation remains volatile. The RBI has done a fine job of balancing inflation controls with economic growth." In other measures, the RBI increased the deposit ceiling for non-resident Indians to support a record-weak rupee. Despite the Rupee's fall to repeated all-time lows, Das said the currency remains stable compared to the country's emerging market peers against a resurgent Dollar. To further develop the interest rate derivatives market in India and improve the credibility of interest rate benchmarks, the reserve bank proposes to introduce a new benchmark - the Secured Overnight Rupee Rate (SORR). This is based on all secured money market transactions. RBI governor Das also said central banks were put to test amid geopolitical tensions and financial market volatility over the last year. However, he said the health of the financial sector was at its best, with the financial parameters of banks and NBFCS pointing to strength and resilience. Separately, the governor announced that the RBI will set up a committee of experts to suggest a framework for the responsible and ethical use of artificial intelligence.

RBI keeps key policy rate unchanged for the 11th consecutive time

Shaktikanta Das, governor of India's central bank, is under increasing pressure due to one of the country's biggest GDP growth misses in recent memory. 
He has not received an extension despite his tenure ending next week.

After data showed that the Indian economy grew by 5.4 per cent from July to September, a seven-quarter low far lower than the Reserve Bank of India's 7 per cent forecast, economists have begun to speculate about Das's future. 
 
There has been a lot of speculation that Das may stay on as governor for another six years however, the government has been mum on the matter despite mounting demands for an interest rate cut. 
 
Following nearly two years of steady growth, the majority of 43 experts in a Bloomberg survey anticipate that the central bank will keep its benchmark rate at 6.5 per cent on Friday. 
 
October's inflation rate of 6.21 per cent in India hit a 14-month high, driven mostly by skyrocketing food costs. 
 
This rate is higher than the government-mandated objective of 4 per cent inflation, plus or minus two percentage points.

Radhika Piplani, an economist with Dam Capital Advisors, said the slowdown should be a "wake-up call for the RBI. The next rate decision is live for a policy action and will be keenly watched for reasons behind the GDP miss." 
 
she added, "If the central bank doesn't ease now, it could be forced to compensate with a larger-than-expected cut in February."

The slowdown in growth has heightened the debate of whether the central bank is providing sufficient stimulus to the world's fastest-growing major economy. Especially as core inflation, which does not include energy and food price fluctuations, is low. 
 
Both Nirmala Sitharaman, the minister of finance, and Piyush Goyal, the minister of commerce, have recently demanded lower interest rates. But Das ruled out rate cuts last month and had said lowering rates would be dangerous.

(With inputs from the agencies)

Shaktikanta Das, governor of India's central bank, is under increasing pressure due to one of the country's biggest GDP growth misses in recent memory. He has not received an extension despite his tenure ending next week.

Shaktikanta Das, governor of India's central bank, is under increasing pressure due to one of the country's biggest GDP growth misses in recent memory. He has not received an extension despite his tenure ending next week. After data showed that the Indian economy grew by 5.4 per cent from July to September, a seven-quarter low far lower than the Reserve Bank of India's 7 per cent forecast, economists have begun to speculate about Das's future. There has been a lot of speculation that Das may stay on as governor for another six years however, the government has been mum on the matter despite mounting demands for an interest rate cut. Following nearly two years of steady growth, the majority of 43 experts in a Bloomberg survey anticipate that the central bank will keep its benchmark rate at 6.5 per cent on Friday. October's inflation rate of 6.21 per cent in India hit a 14-month high, driven mostly by skyrocketing food costs. This rate is higher than the government-mandated objective of 4 per cent inflation, plus or minus two percentage points. Radhika Piplani, an economist with Dam Capital Advisors, said the slowdown should be a "wake-up call for the RBI. The next rate decision is live for a policy action and will be keenly watched for reasons behind the GDP miss." she added, "If the central bank doesn't ease now, it could be forced to compensate with a larger-than-expected cut in February." The slowdown in growth has heightened the debate of whether the central bank is providing sufficient stimulus to the world's fastest-growing major economy. Especially as core inflation, which does not include energy and food price fluctuations, is low. Both Nirmala Sitharaman, the minister of finance, and Piyush Goyal, the minister of commerce, have recently demanded lower interest rates. But Das ruled out rate cuts last month and had said lowering rates would be dangerous. (With inputs from the agencies)

Indian central bank governor Shaktikanta Das's future under scanner after GDP miss

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth.

The Reserve Bank of India has kept rates unchanged for over two years.

Sitharaman follows trade minister Piyush Goyal, who last week argued for a cut in interest rates, stating that economic growth required further stimulus.

The RBI governor, Shaktikanta Das, chose not to address Goyal's comments after the central bank kept rates steady for the tenth straight meeting in October. 
According to Das, a rate cut right now would be "Very risky."

The governor added that easing will only be considered if inflation reaches the central bank's target of 4 per cent.

The RBI's next policy decision is scheduled for December 6th.

Speaking at an event, Sitharaman said, given India's growth requirements, there are "Many different voices saying the cost of borrowing is really very stressful." She added, "Bank interest rates will have to be far more affordable."

For the current fiscal year, which ends in March 2025, the RBI projects growth of 7.2 per cent.

However, some analysts, notably those at investment banks like Goldman Sachs, have projected growth as low as 6.5 per cent.

Worries that consumers are cutting back on spending are fuelled by the lacklustre sales of all goods, from soaps to vehicles.

However, downplaying the growth risks, Sitharaman said the government is keeping a careful eye on the economy and is ready to take "All necessary measures" to increase economic activity.

She said, "Let me assure you the government is fully aware of the challenges posed by both domestic and global factors." The finance minister, citing strong economic fundamentals added, "There is no cause for undue concern."

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth. The Reserve Bank of India has kept rates unchanged for over two years.

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth. The Reserve Bank of India has kept rates unchanged for over two years. Sitharaman follows trade minister Piyush Goyal, who last week argued for a cut in interest rates, stating that economic growth required further stimulus. The RBI governor, Shaktikanta Das, chose not to address Goyal's comments after the central bank kept rates steady for the tenth straight meeting in October. According to Das, a rate cut right now would be "Very risky." The governor added that easing will only be considered if inflation reaches the central bank's target of 4 per cent. The RBI's next policy decision is scheduled for December 6th. Speaking at an event, Sitharaman said, given India's growth requirements, there are "Many different voices saying the cost of borrowing is really very stressful." She added, "Bank interest rates will have to be far more affordable." For the current fiscal year, which ends in March 2025, the RBI projects growth of 7.2 per cent. However, some analysts, notably those at investment banks like Goldman Sachs, have projected growth as low as 6.5 per cent. Worries that consumers are cutting back on spending are fuelled by the lacklustre sales of all goods, from soaps to vehicles. However, downplaying the growth risks, Sitharaman said the government is keeping a careful eye on the economy and is ready to take "All necessary measures" to increase economic activity. She said, "Let me assure you the government is fully aware of the challenges posed by both domestic and global factors." The finance minister, citing strong economic fundamentals added, "There is no cause for undue concern."

India's Finance Minister Nirmala Sitharaman calls for lower interest rates

India's Central Bank governor, Shaktikanta Das, said an interest rate cut at this stage would be "very, very risky." He added that the Reserve Bank of India (RBI) is in no hurry to join the wave of easing by global policymakers.

Das said inflation is predicted to decline. However, he said "significant risks" to "the forecast remain. Das said that the dynamics of inflation and growth are well-balanced at the moment. The governor said authorities must continue on the lookout for pricing pressures.

The RBI hinted last week that it could be getting ready to ease after shifting its policy stance to neutral. The central bank, though, kept its benchmark interest rate at the same level for over two years. This comes even as global easing is well underway.

The US Federal Reserve is leading the world banks in lowering interest rates. Thailand was the most recent to do so this week.

Responding to a question about global central bank easing, Das said, "We will not miss the party; we don't want to join any party."

Das pushed back against some views that the RBI was "behind the curve" in cutting rates. Market expectations were aligned with the central bank's actions, he said, citing last week's decision that was predicted by most economists.

The RBI governor said the inflation rate will remain elevated before moderating in November. That's made the timing of a rate cut uncertain. Several economists have now pushed out their rate-cut forecasts from December to next year.

India's Central Bank governor, Shaktikanta Das, said an interest rate cut at this stage would be "very, very risky." He added that the Reserve Bank of India (RBI) is in no hurry to join the wave of easing by global policymakers.

India's Central Bank governor, Shaktikanta Das, said an interest rate cut at this stage would be "very, very risky." He added that the Reserve Bank of India (RBI) is in no hurry to join the wave of easing by global policymakers. Das said inflation is predicted to decline. However, he said "significant risks" to "the forecast remain. Das said that the dynamics of inflation and growth are well-balanced at the moment. The governor said authorities must continue on the lookout for pricing pressures. The RBI hinted last week that it could be getting ready to ease after shifting its policy stance to neutral. The central bank, though, kept its benchmark interest rate at the same level for over two years. This comes even as global easing is well underway. The US Federal Reserve is leading the world banks in lowering interest rates. Thailand was the most recent to do so this week. Responding to a question about global central bank easing, Das said, "We will not miss the party; we don't want to join any party." Das pushed back against some views that the RBI was "behind the curve" in cutting rates. Market expectations were aligned with the central bank's actions, he said, citing last week's decision that was predicted by most economists. The RBI governor said the inflation rate will remain elevated before moderating in November. That's made the timing of a rate cut uncertain. Several economists have now pushed out their rate-cut forecasts from December to next year.

RBI Governor: India's inflation to moderate, but risks remain

The Reserve Bank of India (RBI) has announced its decision to keep the benchmark repo rate steady at 6.5 per cent for the tenth consecutive time, a move that underlines the country's economic resilience despite shifting global trends. This decision comes in stark contrast to the US Federal Reserve's recent interest rate cuts aimed at stimulating a slowing economy.

India's steadfast approach reflects a commitment to maintaining economic stability in the face of persistent food inflation, which significantly impacts household budgets. With food prices contributing approximately 70 per cent to overall retail inflation, the RBI's focus on controlling these pressures is evident. The bank has reiterated its dedication to monitoring inflation closely, particularly as it continues to present challenges for policymakers.

On RBI maintaining repo rate to 6.5 per cent, Bankbazaar Co-founder Adhil Shetty&nbsp;stated that “The RBI has kept the repo rate unchanged at 6.5 per cent, which is good news for inflation control. The repo rate has now remained unchanged at 6.5 per cent for nine consecutive Monetary Policy Committee (MPC) meetings, after a cumulative hike of 250 basis points since May 2022. The RBI has shifted its stance to neutral. This means it is ready to act either way, depending on how things unfold. If inflation stays low, we may see rate cuts in the future. But for now, it's a wait-and-watch situation. Loan holders may need to wait longer for rate cuts, possibly until December. If inflation stays under control, a rate cut could come. Until then, EMIs will remain at current levels.”<o:p></o:p>

Shetty further elaborated that, “Globally, things are looking resilient. Despite challenges like high oil prices and supply chain disruptions, economies are managing well. India's outlook is steady compared to other nations, thanks to strong fundamentals. The policy easing will help start-ups and pre-IPO companies.”<o:p></o:p>

“India’s GDP grew by 6.7 per cent, which is promising. Private consumption and investment have picked up, showing that people and businesses are spending again. Government spending, however, has decreased, putting more pressure on the private sector to drive growth.”

India’s economic fundamentals remain robust<o:p></o:p>

The decision to hold rates steady, signals confidence in India's economic fundamentals, which remain robust despite global uncertainties. While the US has adopted a more accommodative monetary policy, India's choice to maintain higher interest rates positions it as an attractive destination for global investors seeking better returns. This could lead to a strengthening of the Indian rupee as capital flows into the economy increase.

India's economic outlook appears promising, with a reported GDP growth rate of 6.7 per cent. This growth is bolstered by increased private consumption and investment, indicating that both consumers and businesses are regaining confidence and spending once again. However, a decline in government spending has placed greater responsibility on the private sector to sustain this momentum.

While the RBI’s decision is seen as positive news for inflation control, it also suggests that loan holders may have to wait longer for potential rate cuts, possibly until December. The RBI has shifted its stance to neutral, indicating a readiness to adjust rates based on future economic developments. If inflation remains under control, there may be room for future cuts; however, for now, borrowers will need to adapt to current levels of equated monthly installments (EMIs).

Hence, by maintaining the repo rate at 6.5 per cent, the RBI not only aims to control inflation but also reinforces India's position as a resilient player in the global economy. As the situation evolves, stakeholders will be keenly observing future decisions of the Reserve Bank of India.

The Reserve Bank of India (RBI) has announced its decision to keep the benchmark repo rate steady at 6.5 per cent for the tenth consecutive time, a move that underlines the country's economic resilience despite shifting global trends.

The Reserve Bank of India (RBI) has announced its decision to keep the benchmark repo rate steady at 6.5 per cent for the tenth consecutive time, a move that underlines the country's economic resilience despite shifting global trends. This decision comes in stark contrast to the US Federal Reserve's recent interest rate cuts aimed at stimulating a slowing economy. India's steadfast approach reflects a commitment to maintaining economic stability in the face of persistent food inflation, which significantly impacts household budgets. With food prices contributing approximately 70 per cent to overall retail inflation, the RBI's focus on controlling these pressures is evident. The bank has reiterated its dedication to monitoring inflation closely, particularly as it continues to present challenges for policymakers. On RBI maintaining repo rate to 6.5 per cent, Bankbazaar Co-founder Adhil Shetty stated that “The RBI has kept the repo rate unchanged at 6.5 per cent, which is good news for inflation control. The repo rate has now remained unchanged at 6.5 per cent for nine consecutive Monetary Policy Committee (MPC) meetings, after a cumulative hike of 250 basis points since May 2022. The RBI has shifted its stance to neutral. This means it is ready to act either way, depending on how things unfold. If inflation stays low, we may see rate cuts in the future. But for now, it's a wait-and-watch situation. Loan holders may need to wait longer for rate cuts, possibly until December. If inflation stays under control, a rate cut could come. Until then, EMIs will remain at current levels.” Shetty further elaborated that, “Globally, things are looking resilient. Despite challenges like high oil prices and supply chain disruptions, economies are managing well. India's outlook is steady compared to other nations, thanks to strong fundamentals. The policy easing will help start-ups and pre-IPO companies.” “India’s GDP grew by 6.7 per cent, which is promising. Private consumption and investment have picked up, showing that people and businesses are spending again. Government spending, however, has decreased, putting more pressure on the private sector to drive growth.” India’s economic fundamentals remain robust The decision to hold rates steady, signals confidence in India's economic fundamentals, which remain robust despite global uncertainties. While the US has adopted a more accommodative monetary policy, India's choice to maintain higher interest rates positions it as an attractive destination for global investors seeking better returns. This could lead to a strengthening of the Indian rupee as capital flows into the economy increase. India's economic outlook appears promising, with a reported GDP growth rate of 6.7 per cent. This growth is bolstered by increased private consumption and investment, indicating that both consumers and businesses are regaining confidence and spending once again. However, a decline in government spending has placed greater responsibility on the private sector to sustain this momentum. While the RBI’s decision is seen as positive news for inflation control, it also suggests that loan holders may have to wait longer for potential rate cuts, possibly until December. The RBI has shifted its stance to neutral, indicating a readiness to adjust rates based on future economic developments. If inflation remains under control, there may be room for future cuts; however, for now, borrowers will need to adapt to current levels of equated monthly installments (EMIs). Hence, by maintaining the repo rate at 6.5 per cent, the RBI not only aims to control inflation but also reinforces India's position as a resilient player in the global economy. As the situation evolves, stakeholders will be keenly observing future decisions of the Reserve Bank of India.

RBI holds rates steady at 6.5%, signalling economic resilience amid global trends

Digital payments in India have recorded a 90-fold increase in the last 12 years, Reserve Bank of India governor Shaktikanta Das said on Monday.

He said that India accounts for nearly 46 per cent&nbsp;of the world’s digital transactions, adding that this is reflected in the Reserve Bank's Digital Payment Index, which has seen a four-fold rise in the last five years.

"The retail digital payments in India growing from 1.62 billion transactions in 2012-13 to over 147.26 billion transactions in 2023-24. The flagship of our payment systems, the UPI, has become the most talked about fast payment system not only in India but across the world," Das said&nbsp;at the Digital Payments Awareness Week event in Mumbai.

Calling Unified Payments Interface (UPI) the biggest contributor to the growth of the digital payments ecosystem, Das said that the share of the homegrown payment platform in digital payments has reached close to 80 per cent in 2023.

The central bank chief shared that the volume of UPI transactions has increased from 430 million in 2017 to 117.61 billion in 2023. He also noted that the time taken to reach the next 10 billion UPI transactions has progressively declined over the years.

It took 1,668 days for the first 10 billion Person-to-Merchant transactions, whereas the latest 10 billion milestone took just 45 days. Person-to-person transactions took 1,329 days to reach the first-ever 10 billion mark, while taking just 65 days for the latest 10 billion transactions.

Nevertheless, Das argued that there is significant scope for improvement in the digital payment ecosystem.&nbsp;

Through the “Har Payment Digital” Mission, he said, that the RBI is aiming to make every Indian adopt digital payments.

"Since the start of the mission in March 2023, 66.5 million new UPI users have been added up to January 31, 2024," the central bank governor said, while adding that the Payments Infrastructure Development Fund aided this growth.

This fund, created in January 2021 and extended up to December 2025, aims to increase the number of devices that accept digital payments in smaller cities and towns, strengthening India's digital payments system.&nbsp;

As per a 2023 RBI notification, the fund seeks to add 3 million payment devices every year.

Das also acknowledged bottlenecks in the internet banking infrastructure, especially when it comes to interoperability between banks and payment aggregators, leading to delays in payments and settlements.

He said that the RBI's 'Payments Vision 2025' aims to make internet banking transactions quicker and efficient.

"We have approved the implementation of an interoperable system to NPCI Bharat BillPay. We expect it to be launched during the current calendar year (2024-25)," the former Tamil Nadu-cadre bureaucrat said.

Digital payments in India have recorded a 90-fold increase in the last 12 years, Reserve Bank of India governor Shaktikanta Das said on Monday. He said that India accounts for nearly 46 per cent of the world’s digital transactions, adding that this is reflected in the Reserve Bank's Digital Payment Index, which has seen a four-fold rise in the last five years.

Digital payments in India have recorded a 90-fold increase in the last 12 years, Reserve Bank of India governor Shaktikanta Das said on Monday. He said that India accounts for nearly 46 per cent of the world’s digital transactions, adding that this is reflected in the Reserve Bank's Digital Payment Index, which has seen a four-fold rise in the last five years. "The retail digital payments in India growing from 1.62 billion transactions in 2012-13 to over 147.26 billion transactions in 2023-24. The flagship of our payment systems, the UPI, has become the most talked about fast payment system not only in India but across the world," Das said at the Digital Payments Awareness Week event in Mumbai. Calling Unified Payments Interface (UPI) the biggest contributor to the growth of the digital payments ecosystem, Das said that the share of the homegrown payment platform in digital payments has reached close to 80 per cent in 2023. The central bank chief shared that the volume of UPI transactions has increased from 430 million in 2017 to 117.61 billion in 2023. He also noted that the time taken to reach the next 10 billion UPI transactions has progressively declined over the years. It took 1,668 days for the first 10 billion Person-to-Merchant transactions, whereas the latest 10 billion milestone took just 45 days. Person-to-person transactions took 1,329 days to reach the first-ever 10 billion mark, while taking just 65 days for the latest 10 billion transactions. Nevertheless, Das argued that there is significant scope for improvement in the digital payment ecosystem. Through the “Har Payment Digital” Mission, he said, that the RBI is aiming to make every Indian adopt digital payments. "Since the start of the mission in March 2023, 66.5 million new UPI users have been added up to January 31, 2024," the central bank governor said, while adding that the Payments Infrastructure Development Fund aided this growth. This fund, created in January 2021 and extended up to December 2025, aims to increase the number of devices that accept digital payments in smaller cities and towns, strengthening India's digital payments system. As per a 2023 RBI notification, the fund seeks to add 3 million payment devices every year. Das also acknowledged bottlenecks in the internet banking infrastructure, especially when it comes to interoperability between banks and payment aggregators, leading to delays in payments and settlements. He said that the RBI's 'Payments Vision 2025' aims to make internet banking transactions quicker and efficient. "We have approved the implementation of an interoperable system to NPCI Bharat BillPay. We expect it to be launched during the current calendar year (2024-25)," the former Tamil Nadu-cadre bureaucrat said.

RBI Governor Shaktikanta Das hails UPI. Here's what he said

Persistent non-compliance by Paytm with the regulatory guidelines despite nudges over a period of time ultimately led to the stern action against the fintech, the RBI said on Thursday and also made it clear that there are no systemic worries. 
 
Without disclosing specific details of what led to the action against the fintech, Governor Shaktikanta Das made it clear that Paytm's lack of compliance to regulations does not pose a systemic threat. 
 
"There is no worry about the system at the moment. Here we are talking about a specific institution, a specific payment bank," Das told reporters at the central bank headquarters here at the customary post-policy media briefing.

Deputy Governor Swaminathan J said the January 31 action against Paytm Payments Bank, wherein the RBI has barred it from onbaording new customers, and asked to stop services related to deposits, prepaid instruments and e-wallet after February 29, was the culmination of a long series of bilateral engagement.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/paytm-faces-regulatory-hurdles-in-india-while-walmart-google-seize-market-opportunity-687706">Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity</a> 
 
"This is a supervisory action on a regulated entity for persistent non-compliance. Such supervisory actions are invariably preceded by months and at times years of bilateral engagement, where we not only point out deficiencies but also provide more than adequate time for them to take corrective action," the commercial banker-turned-regulator said. 
 
Das said it starts with "nudges" from the regulator for corrective action and sometimes the RBI may give more than sufficient time to an entity to comply, and it is lack of compliance which ultimately leads to the business restrictions order. 
 
The proportionality aspect is taken into consideration before imposing any restriction, Das said, adding, "all our actions are in the best interest of systemic stability and protection of depositors or customers' interest.

"These aspects cannot be compromised. Individual entities should be mindful of these aspects for their long-term success."

Earlier in the day, Das' statement stressed on "good governance, robust risk management, sound compliance culture and protection of customers' interest" being of paramount importance for the Reserve Bank.

Das said there are a lot of questions and concerns in the minds of people, and the Reserve Bank will be coming out with a detailed FAQ (frequently asked questions) next week which will make things clear.

When asked about the decision to impose the rather strong action of business restrictions, without going for other alternatives like appointing a director on the board as it has done in some cases in the recent past, Swaminathan said an "one size fits all kind of solution may not work in such situations".

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/explained-rbi-orders-paytms-banking-arm-to-stop-fresh-business-what-happens-next-685969">Explained | RBI orders Paytm’s banking arm to stop fresh business. What happens next?</a>

"As a regulator, it's incumbent upon us to protect the interests of the ultimate consumer and thereby protecting the stability of the financial system," Swaminathan said.

He was tightlipped about the future course of action, but promised that customers' inconvenience will be minimized.

When asked about the reasons for the action, specifically if it has been triggered by the ownership structure at Paytm or if it is limited to KYC concerns, Das declined to reveal anything about the "bilateral engagements".

"The regulations are robust. It is not a case where there was a regulatory deficiency or there was a regulatory correction required. It's an issue of compliance, compliance with various parameters," he said.

Persistent non-compliance by Paytm with the regulatory guidelines despite nudges over a period of time ultimately led to the stern action against the fintech, the RBI said on Thursday and also made it clear that there are no systemic worries.

Persistent non-compliance by Paytm with the regulatory guidelines despite nudges over a period of time ultimately led to the stern action against the fintech, the RBI said on Thursday and also made it clear that there are no systemic worries. Without disclosing specific details of what led to the action against the fintech, Governor Shaktikanta Das made it clear that Paytm's lack of compliance to regulations does not pose a systemic threat. "There is no worry about the system at the moment. Here we are talking about a specific institution, a specific payment bank," Das told reporters at the central bank headquarters here at the customary post-policy media briefing. Deputy Governor Swaminathan J said the January 31 action against Paytm Payments Bank, wherein the RBI has barred it from onbaording new customers, and asked to stop services related to deposits, prepaid instruments and e-wallet after February 29, was the culmination of a long series of bilateral engagement. ALSO READ | Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity "This is a supervisory action on a regulated entity for persistent non-compliance. Such supervisory actions are invariably preceded by months and at times years of bilateral engagement, where we not only point out deficiencies but also provide more than adequate time for them to take corrective action," the commercial banker-turned-regulator said. Das said it starts with "nudges" from the regulator for corrective action and sometimes the RBI may give more than sufficient time to an entity to comply, and it is lack of compliance which ultimately leads to the business restrictions order. The proportionality aspect is taken into consideration before imposing any restriction, Das said, adding, "all our actions are in the best interest of systemic stability and protection of depositors or customers' interest. "These aspects cannot be compromised. Individual entities should be mindful of these aspects for their long-term success." Earlier in the day, Das' statement stressed on "good governance, robust risk management, sound compliance culture and protection of customers' interest" being of paramount importance for the Reserve Bank. Das said there are a lot of questions and concerns in the minds of people, and the Reserve Bank will be coming out with a detailed FAQ (frequently asked questions) next week which will make things clear. When asked about the decision to impose the rather strong action of business restrictions, without going for other alternatives like appointing a director on the board as it has done in some cases in the recent past, Swaminathan said an "one size fits all kind of solution may not work in such situations". ALSO READ | Explained | RBI orders Paytm’s banking arm to stop fresh business. What happens next? "As a regulator, it's incumbent upon us to protect the interests of the ultimate consumer and thereby protecting the stability of the financial system," Swaminathan said. He was tightlipped about the future course of action, but promised that customers' inconvenience will be minimized. When asked about the reasons for the action, specifically if it has been triggered by the ownership structure at Paytm or if it is limited to KYC concerns, Das declined to reveal anything about the "bilateral engagements". "The regulations are robust. It is not a case where there was a regulatory deficiency or there was a regulatory correction required. It's an issue of compliance, compliance with various parameters," he said.

Persistent non-compliance led to Paytm action, no systemic worries: RBI

Reserve Bank Of India Governor Shaktikanta Das has expressed confidence in India's economic trajectory. Highlighting a recovery in the banking sector and international trust in India's stability, Das emphasised the opportune moment for businesses to invest in the Indian ecosystem.

Indian rupee to become global currency?

India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time.&nbsp;

The Reserve Bank of India left the repo rate at 6.5 per cent while taking into account easing inflationary pressures and robust economic growth data.

"The rate action so far is still working its way into the economy. Hence, the Monetary Policy Committee decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth," RBI Governor Shaktikanta Das said.&nbsp;

'Withdrawal of accommodation' is a term used by the central bank to denote a tighter monetary policy which reduces liquidity to control inflation.&nbsp;&nbsp;

The RBI hiked the repo rate from 4 per cent to 6.5 per cent between May 2022 and February 2023 before pausing the hikes.&nbsp;

The central bank retained its projection for retail (CPI) inflation – which includes food &amp; essential commodities – at 5.4 per cent for the current fiscal year, 2023-24.&nbsp;

However, inflation is expected to fall below five per cent by 2024, provided India receives normal rainfall.&nbsp;

"Policymakers have to be mindful of the risk of being carried away by a few months of good data or by the fact that CPI inflation has come within the target range," Das said, indicating that the RBI will continue to maintain a hawkish stance on inflation.&nbsp;

The Ukraine war disrupted the already distorted pandemic-led global supply chain, which led to high consumer inflation in India. However, things have eased out since then.&nbsp;

Retail inflation remained under the RBI's target range of 4-6% in October -- 4.87%. However, the central bank added that India is still far from bringing inflation under four per cent.&nbsp;

India is doing well, but headwinds remain

Das said the Indian economy presents a picture of 'resilience and momentum', pointing to the July-September quarter growth rate of 7.6 per cent that defied expectation.&nbsp;

"The fundamentals of the Indian economy remain strong... Consumer and business optimism create congenial conditions for sustained growth of the Indian economy," Das added.&nbsp;

The central bank also revised the real GDP growth rate for 2023-24 from 6.5 per cent to 7.0 per cent.&nbsp;

Improving rural demand, strengthening manufacturing activity, buoyancy in services, and government infrastructure spending could help India end the current financial year on a high.&nbsp;

Even with the bright economic forecast, challenges will persist in 2024 due to the fragile global economy.&nbsp;

"Elevated debt levels, geopolitical hostilities and extreme weather conditions remain risks to the inflation outlook," RBI Governor Shaktikanta Das said.

Uncertain food prices are likely to impact inflation in the near term, with elevated sugar prices likely to be a cause for concern.&nbsp;

What is the repo rate?

The repo rate or repurchase rate is when the central bank lends money to commercial banks in India. A change in the repo rate affects the money flow in the economy.&nbsp;

A cut in repo rate leads to increased money circulation -- colloquially called easy money policy. On the other hand, if the repo rate rises, money circulation is curtailed, and borrowing costs rise.&nbsp;

In India, the repo rate is a tool the central bank uses to curb economic inflation.

Industry&nbsp;speaks&nbsp;

Adhil Shetty, CEO of Bankbazaar, welcomed the pause in the repo rate, pointing out that a stable lending rate can encourage investments and foster economic growth.&nbsp;

The policy stability, he argued, may bolster buyer sentiments in the real estate sector.&nbsp;

"Existing borrowers can rest assured that their EMIs won't be immediately affected. Prospective homebuyers may find relief in the stable repo rate, allowing them to plan their moves without the imminent threat of rate hikes," he said.

Terming the rate pause 'hawkish', Bhuvan Rustagi, Co-Founder, Lendbox, added that the announcement is good news for Indian retail investors.

"While interest rates remain unchanged in the short term, a stable economic environment and controlled inflation can provide a positive long-term outlook for investment. Savings and Deposit rates are likely to remain stable which translates into a positive investment option for investors looking for stable returns," he said.&nbsp;

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India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time. The Reserve Bank of India left the repo rate at 6.

India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time. The Reserve Bank of India left the repo rate at 6.5 per cent while taking into account easing inflationary pressures and robust economic growth data. "The rate action so far is still working its way into the economy. Hence, the Monetary Policy Committee decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth," RBI Governor Shaktikanta Das said. 'Withdrawal of accommodation' is a term used by the central bank to denote a tighter monetary policy which reduces liquidity to control inflation. The RBI hiked the repo rate from 4 per cent to 6.5 per cent between May 2022 and February 2023 before pausing the hikes. The central bank retained its projection for retail (CPI) inflation – which includes food & essential commodities – at 5.4 per cent for the current fiscal year, 2023-24. However, inflation is expected to fall below five per cent by 2024, provided India receives normal rainfall. "Policymakers have to be mindful of the risk of being carried away by a few months of good data or by the fact that CPI inflation has come within the target range," Das said, indicating that the RBI will continue to maintain a hawkish stance on inflation. The Ukraine war disrupted the already distorted pandemic-led global supply chain, which led to high consumer inflation in India. However, things have eased out since then. Retail inflation remained under the RBI's target range of 4-6% in October -- 4.87%. However, the central bank added that India is still far from bringing inflation under four per cent. India is doing well, but headwinds remain Das said the Indian economy presents a picture of 'resilience and momentum', pointing to the July-September quarter growth rate of 7.6 per cent that defied expectation. "The fundamentals of the Indian economy remain strong... Consumer and business optimism create congenial conditions for sustained growth of the Indian economy," Das added. The central bank also revised the real GDP growth rate for 2023-24 from 6.5 per cent to 7.0 per cent. Improving rural demand, strengthening manufacturing activity, buoyancy in services, and government infrastructure spending could help India end the current financial year on a high. Even with the bright economic forecast, challenges will persist in 2024 due to the fragile global economy. "Elevated debt levels, geopolitical hostilities and extreme weather conditions remain risks to the inflation outlook," RBI Governor Shaktikanta Das said. Uncertain food prices are likely to impact inflation in the near term, with elevated sugar prices likely to be a cause for concern. What is the repo rate? The repo rate or repurchase rate is when the central bank lends money to commercial banks in India. A change in the repo rate affects the money flow in the economy. A cut in repo rate leads to increased money circulation -- colloquially called easy money policy. On the other hand, if the repo rate rises, money circulation is curtailed, and borrowing costs rise. In India, the repo rate is a tool the central bank uses to curb economic inflation. Industry speaks Adhil Shetty, CEO of Bankbazaar, welcomed the pause in the repo rate, pointing out that a stable lending rate can encourage investments and foster economic growth. The policy stability, he argued, may bolster buyer sentiments in the real estate sector. "Existing borrowers can rest assured that their EMIs won't be immediately affected. Prospective homebuyers may find relief in the stable repo rate, allowing them to plan their moves without the imminent threat of rate hikes," he said. Terming the rate pause 'hawkish', Bhuvan Rustagi, Co-Founder, Lendbox, added that the announcement is good news for Indian retail investors. "While interest rates remain unchanged in the short term, a stable economic environment and controlled inflation can provide a positive long-term outlook for investment. Savings and Deposit rates are likely to remain stable which translates into a positive investment option for investors looking for stable returns," he said. WATCH WION LIVE HERE

India's central bank keeps the pause on key rates

Governor of Reserve Bank of India Shaktikanta Das said on Monday (June 26) that the impact of the withdrawal of Rs 2,000 currency notes on the economy will be "very very marginal" as the notes accounted for only 10.8 per cent of the currency in circulation.

He described the withdrawal exercise as being part of the currency management operations of the Reserve Bank of India. He said he expected most of the withdrawn&nbsp;Rs 2,000 notes to be returned by September 30, which is the deadline to return the notes.

"As you know that Rs 2,000 notes were not commonly used in any transaction … We have found that it is hardly being used for carrying out transactions. Therefore, economic activity will not be impacted," he said as per Press Trust of India (PTI)

"As part of a clean note policy, he said, RBI has been conducting such exercise of withdrawal of currency notes from time to time and such exercise was undertaken in 2013-14, whereby the notes which were printed prior to 2005, were withdrawn from public circulation."

Asked if ₹2,000 notes will continue to be&nbsp;legal tender, Das said, “It will continue as legal tender. We will wait how many notes are coming. I cannot give a speculative answer about what will happen post-September 30.”&nbsp;

"Most of the notes are expected to come back," he said, adding “that is our expectation at this stage. We will see how many notes come back. And as we approach September 30, we will decide at that stage.”

<h2>No need to panic</h2>

Das said that there was enough time available for people to exchange and deposit the notes in bank accounts so there was no need to panic.&nbsp;

The governor explained that there were more than adequate notes available in the system.

“So there is adequate stock available and there is no reason to worry whatsoever. We have more than sufficient stocks,” he said.

He stressed that RBI was sensitive to difficulties possibly faced by Indians on long foreign visits or those who are living in other countries on work visas.

Also Read | <a href="https://www.wionews.com/india-news/indian-clock-tells-story-of-most-populous-nation-608958">Indian clock tells story of most populous nation</a>

“It will be our endeavour to address the difficulties of the people and to complete the entire process in a smooth manner,” he said.

To a question regarding black money coming back to the system, he said, there is a set procedure for deposits in your account or cash exchange.

“What we have said is that the existing requirements or the existing procedures have to be followed by the banks. We have not come out with an additional procedure. You must be aware that there’s an income tax rule if you deposit cash above Rs 50,000 then you have to produce your PAN. So existing rules will apply,” he said.

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

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Governor of Reserve Bank of India Shaktikanta Das said on Monday (June 26) that the impact of the withdrawal of Rs 2,000 currency notes on the economy will be "very very marginal" as the notes accounted for only 10.

Governor of Reserve Bank of India Shaktikanta Das said on Monday (June 26) that the impact of the withdrawal of Rs 2,000 currency notes on the economy will be "very very marginal" as the notes accounted for only 10.8 per cent of the currency in circulation. He described the withdrawal exercise as being part of the currency management operations of the Reserve Bank of India. He said he expected most of the withdrawn Rs 2,000 notes to be returned by September 30, which is the deadline to return the notes. "As you know that Rs 2,000 notes were not commonly used in any transaction … We have found that it is hardly being used for carrying out transactions. Therefore, economic activity will not be impacted," he said as per Press Trust of India (PTI) "As part of a clean note policy, he said, RBI has been conducting such exercise of withdrawal of currency notes from time to time and such exercise was undertaken in 2013-14, whereby the notes which were printed prior to 2005, were withdrawn from public circulation." Asked if ₹2,000 notes will continue to be legal tender, Das said, “It will continue as legal tender. We will wait how many notes are coming. I cannot give a speculative answer about what will happen post-September 30.” "Most of the notes are expected to come back," he said, adding “that is our expectation at this stage. We will see how many notes come back. And as we approach September 30, we will decide at that stage.” No need to panic Das said that there was enough time available for people to exchange and deposit the notes in bank accounts so there was no need to panic. The governor explained that there were more than adequate notes available in the system. “So there is adequate stock available and there is no reason to worry whatsoever. We have more than sufficient stocks,” he said. He stressed that RBI was sensitive to difficulties possibly faced by Indians on long foreign visits or those who are living in other countries on work visas. Also Read | Indian clock tells story of most populous nation “It will be our endeavour to address the difficulties of the people and to complete the entire process in a smooth manner,” he said. To a question regarding black money coming back to the system, he said, there is a set procedure for deposits in your account or cash exchange. “What we have said is that the existing requirements or the existing procedures have to be followed by the banks. We have not come out with an additional procedure. You must be aware that there’s an income tax rule if you deposit cash above Rs 50,000 then you have to produce your PAN. So existing rules will apply,” he said. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

'Very very marginal' impact on economy: RBI governor on Rs 2,000 note withdrawal

RBI governor Shaktikanta Das has received the 'Governor of the Year' award at London's Central Banking Awards 2023.

Das has been awarded for his pivotal role in implementing critical reforms, driving world-leading payment innovations, and steering India through challenging times with exceptional leadership skills.&nbsp;

Das was recommended for the award by London-based international economic research journal Central Banking in March 2023.

Assuming the position of RBI governor in December 2018, Das faced a challenging situation as one of India's major Non-Banking Financial Companies (NBFCs) went bankrupt, triggering a liquidity crunch. This event exposed significant flaws in the business models of several mid-sized banks that heavily relied on NBFCs. Subsequently, other banks, including Punjab and Maharashtra Co-operative Bank, also faced collapse.

The award statement said that Das' tenure "has been marked by a series of grave challenges, starting with the collapse of a major non-banking firm, moving through the first and second waves of the coronavirus, and then, in 2022, Russia’s invasion of Ukraine and its inflationary impact."&nbsp;

The organizers highlighted Das's significant accomplishments, including the resolution of collapsed non-bank financial companies and the steady improvement of the banking sector, which had hindered India's growth for an extended period.&nbsp;

Das is the second Central Bank governor to receive this prestigious award, following Raghuram Rajan, who won the title in 2015.&nbsp;

In addition to successfully addressing India's banking crisis, the statement lauded Das for effectively managing India's response to the COVID-19 pandemic and for skillfully tackling the inflationary impact of Russia's invasion of Ukraine.&nbsp; 
&nbsp;

RBI governor Shaktikanta Das has received the 'Governor of the Year' award at London's Central Banking Awards 2023. Das has been awarded for his pivotal role in implementing critical reforms, driving world-leading payment innovations, and steering India through challenging times with exceptional leadership skills.

RBI governor Shaktikanta Das has received the 'Governor of the Year' award at London's Central Banking Awards 2023. Das has been awarded for his pivotal role in implementing critical reforms, driving world-leading payment innovations, and steering India through challenging times with exceptional leadership skills. Das was recommended for the award by London-based international economic research journal Central Banking in March 2023. Assuming the position of RBI governor in December 2018, Das faced a challenging situation as one of India's major Non-Banking Financial Companies (NBFCs) went bankrupt, triggering a liquidity crunch. This event exposed significant flaws in the business models of several mid-sized banks that heavily relied on NBFCs. Subsequently, other banks, including Punjab and Maharashtra Co-operative Bank, also faced collapse. The award statement said that Das' tenure "has been marked by a series of grave challenges, starting with the collapse of a major non-banking firm, moving through the first and second waves of the coronavirus, and then, in 2022, Russia’s invasion of Ukraine and its inflationary impact." The organizers highlighted Das's significant accomplishments, including the resolution of collapsed non-bank financial companies and the steady improvement of the banking sector, which had hindered India's growth for an extended period. Das is the second Central Bank governor to receive this prestigious award, following Raghuram Rajan, who won the title in 2015. In addition to successfully addressing India's banking crisis, the statement lauded Das for effectively managing India's response to the COVID-19 pandemic and for skillfully tackling the inflationary impact of Russia's invasion of Ukraine.

Shaktikanta Das named ‘Governor of the Year’ at London Central Banking Awards 2023

India's central bank recently announced that ₹2,000 currency notes will be sent out of circulation. While they will continue to be legal tender even after the cutoff date of September 30, 2023, people are encouraged to either deposit or exchange these notes.

The ₹2,000 notes form the largest currency denomination in India. As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation. This translates to about ₹3.62 lakh crore of currency notes.&nbsp;

Once this proportion of the currency is out of use, ₹500 will be the largest currency denomination in India. On Monday, the Reserve Bank of India governor was asked if there was any consideration to bring back the ₹1000 currency notes.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/what-rbi-will-do-with-your-out-of-use-rs2000-currency-note-595116">What will RBI do with your out-of-use ₹2,000 currency notes?</a>

The governor revealed that the Reserve Bank of India does not&nbsp;plan to reintroduce ₹1,000 banknotes to ease the impact following the withdrawal of ₹ 2,000 notes.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/indians-might-rush-to-buy-gold-and-real-estate-after-2000-note-withdrawal-will-help-boost-economy-595175">Indians rush to jewellery stores, petrol pumps after 2,000 note withdrawal</a>

Das called reports on the subject "speculative".

"That's speculative. There's no such proposal right now," Das said when asked whether there is a possibility of reintroducing ₹ 1,000 notes.

<h2>No need to rush to banks: India's central bank chief</h2>

Speaking to journalists for the first time since the move, Das also said that no one should rush to banks to return or exchange their ₹2,000 notes.

"There is no reason to rush to banks now. You have four months, till September 30," the RBI Governor said. He added that the deadline was given so that people take the matter seriously.

<h2>How will it affect the Indian economy?</h2>

The impact of the withdrawal on the economy will be "very, very marginal", the RBI governor said, adding ₹2,000 notes made up for just 10.8 per cent of the total currency in circulation.

"₹2000 banknotes were introduced primarily to replenish the notes withdrawn following demonstration," the RBI chief added.

ALSO WATCH |&nbsp;Reserve Bank of India: 'Clean money policy' reason for withdrawal

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Eighty-nine per cent of the ₹2,000 notes were issued before March 2017. They are said to be at the end of their estimated life span of four to five years.

"The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to ₹3.62 lakh crore, constituting only 10.8 per cent of notes in circulation on March 31, 2023," RBI said.

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India's central bank recently announced that ₹2,000 currency notes will be sent out of circulation. While they will continue to be legal tender even after the cutoff date of September 30, 2023, people are encouraged to either deposit or exchange these notes.

India's central bank recently announced that ₹2,000 currency notes will be sent out of circulation. While they will continue to be legal tender even after the cutoff date of September 30, 2023, people are encouraged to either deposit or exchange these notes. The ₹2,000 notes form the largest currency denomination in India. As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation. This translates to about ₹3.62 lakh crore of currency notes. Once this proportion of the currency is out of use, ₹500 will be the largest currency denomination in India. On Monday, the Reserve Bank of India governor was asked if there was any consideration to bring back the ₹1000 currency notes. ALSO READ | What will RBI do with your out-of-use ₹2,000 currency notes? The governor revealed that the Reserve Bank of India does not plan to reintroduce ₹1,000 banknotes to ease the impact following the withdrawal of ₹ 2,000 notes. ALSO READ | Indians rush to jewellery stores, petrol pumps after 2,000 note withdrawal Das called reports on the subject "speculative". "That's speculative. There's no such proposal right now," Das said when asked whether there is a possibility of reintroducing ₹ 1,000 notes. No need to rush to banks: India's central bank chief Speaking to journalists for the first time since the move, Das also said that no one should rush to banks to return or exchange their ₹2,000 notes. "There is no reason to rush to banks now. You have four months, till September 30," the RBI Governor said. He added that the deadline was given so that people take the matter seriously. How will it affect the Indian economy? The impact of the withdrawal on the economy will be "very, very marginal", the RBI governor said, adding ₹2,000 notes made up for just 10.8 per cent of the total currency in circulation. "₹2000 banknotes were introduced primarily to replenish the notes withdrawn following demonstration," the RBI chief added. ALSO WATCH | Reserve Bank of India: 'Clean money policy' reason for withdrawal × Eighty-nine per cent of the ₹2,000 notes were issued before March 2017. They are said to be at the end of their estimated life span of four to five years. "The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to ₹3.62 lakh crore, constituting only 10.8 per cent of notes in circulation on March 31, 2023," RBI said. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Will Indians be able to spend using ₹1000 notes again? RBI governor responds

Amid the kerfuffle surrounding the withdrawal of Rs 2,000 notes from circulation, Reserve Bank of India Governor Shaktikanta Das on Monday explained why such a decision was taken.&nbsp;Das asserted the currency continues to be a legal tender, adding that decision was part of the central bank's currency management exercise.&nbsp;&nbsp;

"Let me clarify and re-emphasise that it is a part of the currency management operations of the Reserve Bank..for a long time, the Reserve Bank has been following a clean note policy," said Das.&nbsp;

"From time to time, RBI withdraws notes of a particular series and issues fresh notes...we are withdrawing the Rs 2000 notes from circulation but they continue as legal tender."

The RBI governor added that&nbsp;the September deadline had been granted so that the "process will be taken seriously".

Das emphasised&nbsp;that Rs 2,000 notes were primarily issued in circulation to quickly replenish the value of money which was being taken out from the system.

The RBI governor was referring to the 'demonetisation' process initiated in 2016 by the central bank where old Rs 1,000 and Rs 500 notes were taken out of the system.&nbsp;

<a href="https://www.wionews.com/videos/state-bank-of-india-no-identity-proof-needed-to-exchange-2000-note-594920">WATCH |&nbsp;State Bank of India: No identity proof needed to exchange 2000-note</a>

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<h2>How to exchange&nbsp;the currency?</h2>

Apart from banks exchanging the notes, the facility for the same up to Rs 20,000 limit&nbsp;will also be provided at the 19 Regional Offices (ROs) of the RBI, starting May 23, said a press release issued by India's central bank.

“The exchange facility for Rs 2,000 banknotes up to Rs 20,000 at a time would be available from May 23,” the RBI said in a statement, advising the banks to stop issuing Rs 2,000 denomination banknotes with immediate effect.

<a href="https://www.wionews.com/india-news/indias-central-bank-rbi-stops-circulation-of-rs-2000-currency-594168">ALSO READ |&nbsp;India’s central bank RBI withdraws Rs 2,000 currency note from circulation</a>

The 2,000 banknotes had been dwindling in circulation for the past few years. According to the finance ministry's report tabled in Parliament in December 2022,&nbsp;the notes of Rs 2000 denomination in terms of value to the total notes in circulation dipped from 22.6 per cent (March 31, 2020) to 13.8 per cent at the end of March 31, 2022.

(With inputs from agencies)

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Amid the kerfuffle surrounding the withdrawal of Rs 2,000 notes from circulation, Reserve Bank of India Governor Shaktikanta Das on Monday explained why such a decision was taken.

Amid the kerfuffle surrounding the withdrawal of Rs 2,000 notes from circulation, Reserve Bank of India Governor Shaktikanta Das on Monday explained why such a decision was taken. Das asserted the currency continues to be a legal tender, adding that decision was part of the central bank's currency management exercise. "Let me clarify and re-emphasise that it is a part of the currency management operations of the Reserve Bank..for a long time, the Reserve Bank has been following a clean note policy," said Das. "From time to time, RBI withdraws notes of a particular series and issues fresh notes...we are withdrawing the Rs 2000 notes from circulation but they continue as legal tender." The RBI governor added that the September deadline had been granted so that the "process will be taken seriously". Das emphasised that Rs 2,000 notes were primarily issued in circulation to quickly replenish the value of money which was being taken out from the system. The RBI governor was referring to the 'demonetisation' process initiated in 2016 by the central bank where old Rs 1,000 and Rs 500 notes were taken out of the system. WATCH | State Bank of India: No identity proof needed to exchange 2000-note × How to exchange the currency? Apart from banks exchanging the notes, the facility for the same up to Rs 20,000 limit will also be provided at the 19 Regional Offices (ROs) of the RBI, starting May 23, said a press release issued by India's central bank. “The exchange facility for Rs 2,000 banknotes up to Rs 20,000 at a time would be available from May 23,” the RBI said in a statement, advising the banks to stop issuing Rs 2,000 denomination banknotes with immediate effect. ALSO READ | India’s central bank RBI withdraws Rs 2,000 currency note from circulation The 2,000 banknotes had been dwindling in circulation for the past few years. According to the finance ministry's report tabled in Parliament in December 2022, the notes of Rs 2000 denomination in terms of value to the total notes in circulation dipped from 22.6 per cent (March 31, 2020) to 13.8 per cent at the end of March 31, 2022. (With inputs from agencies) WATCH WION LIVE HERE:

'Clean note policy': RBI governor explains decision to withdraw Rs 2,000 notes

RBI keeps repo rate unchanged: On Thursday, India's central bank, the Reserve Bank of India (RBI) finally applied the brakes on increasing the repo rate by keeping it unchanged at 6.

RBI keeps repo rate unchanged: On Thursday, India's central bank, the Reserve Bank of India (RBI) finally applied the brakes on increasing the repo rate by keeping it unchanged at 6.5 per cent. The pause came after the central bank had announced six hikes since May last year to a cumulative 250 basis points. Presiding over the RBI Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das said although the repo rate was unchanged, it could be altered should the situation warrant so. “While we have kept the policy rate unchanged, this decision was taken based on our assessment of the macroeconomic and financial conditions with reference to information available up to today,” Das told the reporters after the meeting. “Overall inflation is above the target and the current policy rate still remains accommodative. It is now necessary to evaluate the action of past rate hikes." WATCH | Is the Indian Rupee challenging the Dollar's dominance in global trade? × India's central bank is wary of the rising uncertainty in international markets and inflation pressures. It has projected the inflation to stand at 5.1 per cent and 5.4 per cent in Q1, Q2 respectively. Notably, worried due to the global indicators and increasing inflation, the MPC last year in an unscheduled meeting in May raised rates for the first time by 40 basis points. The trend continued in June, August and September when the committee increased repo rates by a combined 150 points. The last two hikes came in December 2022 and February 2023 with MPC hiking the rates by 35 basis points and 25 basis points respectively. ALSO READ | RBI hikes repo rate by 25 bps in Monetary Policy 2023: What is repo rate, reverse repo rate & monetary policy? What is repo rate? When commercial banks loan by selling their securities to the central bank, the RBI charges them an interest rate. This interest rate is called the repo rate in the monetary policy. Lower interest rates make it easier for individuals and businesses to borrow money to invest in new economic activities. India Inc cheers RBI, terms decision ‘prudent’ move Meanwhile, Indian industry cheered RBI’s stance of keeping the key interest rate unchanged, terming it a "prudent" move in the wake of headwinds emanating from global banking stress. The industry honchos said the move will improve business sentiments by containing the rise in borrowing costs. Industry bodies cautioned that any further hike in the benchmark repo rate at this juncture would have affected India's economic growth even as domestic demand impulses remain healthy. "The industry body agrees with the central bank's observation that the lagged impact of the past rate hikes should be allowed to percolate into the system, and not stifle demand by further rate hikes," said CII president Sanjiv Bajaj. The market sentiment was also buoyed by the RBI announcement and the Sensex closed up by 143 points at 59,832, while the Nifty settled at 17,599 at the end of the day's trade. (With inputs from agencies) WATCH WION LIVE HERE:

RBI applies brakes on repo rate hike, keeps it unchanged at 6.5%

The Reserve Bank of India (RBI) hiked its key interest rate, the repo rate, by 25 basis points on Wednesday and lowered its growth and inflation projections.

The repo rate is the interest banks pay to borrow from the central bank, and an increase in that rate makes banks raise their lending charges.

The latest is the sixth consecutive rate hike, taking the RBI's key rate to 6.50 per cent.

In all, the RBI has raised the benchmark rate by 2.5 per cent since May last year in its fight against inflation, which stayed above the higher end of the central bank's target of 2-6 per cent&nbsp;in 10 of the 12 months last year.

The central bank had to send a mandatory report to the government explaining why it could not meet its inflation target for most months last year.

What does the RBI rate hike mean?

Indian banks are certain to pass on the latest hike to customers almost immediately, as seen in recent months.

That will make loans costlier and lead to higher equated monthly instalments (EMIs).

All consumer loans have become costlier over the past year.

Indian households continue to be under pressure from mounting interest and rising EMIs even as they struggle to manage their monthly budgets from rising prices of almost everything.

The series of relatively large RBI rate hikes have sparked concerns that the battle against inflation could also risk curbing economic growth.

That view has forced several top institutions, including the RBI, to downgrade their India GDP growth forecasts for 2023-24.

But RBI Governor Shaktikanta Das said the Indian economy remains resilient and is seen as a bright spot in a gloomy world.

He also warned inflation is sticky and likely to remain above the central bank's target of 4 per cent&nbsp;this year, and as such, caution is needed.

Still, slowing growth concerns have driven expectations that the RBI's hands will be forced to pause rate hikes at some point soon.

<a href="https://www.wionews.com/india-news/explained-does-writing-on-indian-rupee-make-it-invalid-heres-a-fact-check-551817">Explained: Does writing on Indian rupee make it invalid? Here's a fact check</a>

A Reuters poll taken before Wednesday's decision showed post the latest hike, India's central bank will pause on interest rates.

But the central bank's tone suggests otherwise, with the RBI Governor opening the door for more hikes.

Like other major central banks, the RBI is waiting for stubbornly high inflation to ease further before it moves away from an aggressive approach.

What is not helping is the reason for the global inflation surge over the past year - the disruptions to global supply chains because of the Russia-Ukraine war.

That war on the edge of Europe shows no signs of abating, and instead, the standoff now seems to be escalating further.

That will keep global central banks on their toes.

(With inputs from agencies)

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The Reserve Bank of India (RBI) hiked its key interest rate, the repo rate, by 25 basis points on Wednesday and lowered its growth and inflation projections. The repo rate is the interest banks pay to borrow from the central bank, and an increase in that rate makes banks raise their lending charges.

The Reserve Bank of India (RBI) hiked its key interest rate, the repo rate, by 25 basis points on Wednesday and lowered its growth and inflation projections. The repo rate is the interest banks pay to borrow from the central bank, and an increase in that rate makes banks raise their lending charges. The latest is the sixth consecutive rate hike, taking the RBI's key rate to 6.50 per cent. In all, the RBI has raised the benchmark rate by 2.5 per cent since May last year in its fight against inflation, which stayed above the higher end of the central bank's target of 2-6 per cent in 10 of the 12 months last year. The central bank had to send a mandatory report to the government explaining why it could not meet its inflation target for most months last year. What does the RBI rate hike mean? Indian banks are certain to pass on the latest hike to customers almost immediately, as seen in recent months. That will make loans costlier and lead to higher equated monthly instalments (EMIs). All consumer loans have become costlier over the past year. Indian households continue to be under pressure from mounting interest and rising EMIs even as they struggle to manage their monthly budgets from rising prices of almost everything. The series of relatively large RBI rate hikes have sparked concerns that the battle against inflation could also risk curbing economic growth. That view has forced several top institutions, including the RBI, to downgrade their India GDP growth forecasts for 2023-24. But RBI Governor Shaktikanta Das said the Indian economy remains resilient and is seen as a bright spot in a gloomy world. He also warned inflation is sticky and likely to remain above the central bank's target of 4 per cent this year, and as such, caution is needed. Still, slowing growth concerns have driven expectations that the RBI's hands will be forced to pause rate hikes at some point soon. Explained: Does writing on Indian rupee make it invalid? Here's a fact check A Reuters poll taken before Wednesday's decision showed post the latest hike, India's central bank will pause on interest rates. But the central bank's tone suggests otherwise, with the RBI Governor opening the door for more hikes. Like other major central banks, the RBI is waiting for stubbornly high inflation to ease further before it moves away from an aggressive approach. What is not helping is the reason for the global inflation surge over the past year - the disruptions to global supply chains because of the Russia-Ukraine war. That war on the edge of Europe shows no signs of abating, and instead, the standoff now seems to be escalating further. That will keep global central banks on their toes. (With inputs from agencies) WATCH WION LIVE HERE:

Loans, EMIs to get costlier after RBI hikes rates for the sixth time in a row

The Reserve Bank of India's key interest rate was raised by 50 basis points on Wednesday as widely expected, the second hike in as many months, in a bid to cool persistently high inflation in Asia's third-largest economy.

The central bank also dropped the long-standing phrase that future policy would remain 'accommodative', reinforcing expectations of further rate hikes and other forms of tightening in coming months as fighting inflation becomes its main focus.

"Upside risks to inflation as highlighted in last policy meetings have materialized earlier than expected," RBI Governor Shaktikanta Das said after the policy decision.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/rbi-can-use-watermark-figures-of-rabindranath-tagore-and-apj-abdul-kalam-on-currency-instead-of-mahatma-gandhi-485508">RBI can use watermark figures of Rabindranath Tagore and APJ Abdul Kalam on currency instead of Mahatma Gandhi</a>

The monetary policy committee (MPC) raised the key lending rate or the repo rate by 50 basis points (bps) to 4.90%. The Standing Deposit Facility rate and the Marginal Standing Facility Rate were adjusted higher by the same quantum to 4.65% and 5.15%, respectively.

Das had said earlier that a June 8 move was a "no brainer". But analysts polled by Reuters had been divided over how much it would hike, with forecasts ranging between 25 and 75 bps.

Wednesday's increase follows a 40-bps rise in early May at an unscheduled meeting that kicked off the central bank's tightening cycle, which economists expect to be relatively short.

"The more hawkish tone on inflation suggests to us that the MPC will continue to frontload policy tightening over the coming months, perhaps with another a 50bp hike in the next scheduled meeting in August," said Shilan Shah, senior India economist at Capital Economics.

PRICE PRESSURES INTENSIFYING

Das said inflation will likely remain above the RBI's upper tolerance band in the first three quarters of the financial year that started on April 1.

"The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth," Das said.

Retail inflation in April accelerated to 7.79% from a year earlier, above the RBI's tolerance band for inflation of 2% to 6% for a fourth month in a row, and a further rise in global prices of crude oil, food and other commodities is expected to keep up the upward pressure.

The price spikes have hammered consumer spending and darkened the near-term outlook for India's economic growth, which slowed to the lowest in a year in the first three months of 2022.

The RBI raised its inflation projection for 2022/23 to 6.7% from 5.7% earlier, while maintaining its growth projection at 7.2%.

The central bank had slashed the repo rate by a total of 115 bps since March 2020 to soften the blow from the COVID-19 crisis.

India's 10-year benchmark bond yield fell to a low of 7.43% from the day's high of 7.56% after the policy decision, while the rupee was little changed at 77.69 per dollar.

Also read |<a href="https://www.wionews.com/videos/indias-central-bank-rbi-hikes-interest-rate-476462">&nbsp;India's central bank RBI hikes interest rate</a>

"The comment on the orderly completion of the government borrowing programme has served to cool the 10-year G-sec yield," said Aditi Nayar, chief economist at rating agency ICRA.

India's NSE share index and the BSE index both recouped losses to trade up 0.2% each. [.BO]

"We were expecting a cash reserve ratio hike of 50 bps which did not happen," said Vivek Kumar, economist at research firm QuantEco.

"However, we would still expect some sort of a liquidity action in line with the assumption of guiding the overall surplus lower. This can happen via CRR route or via increased FX intervention (dollar sales) by the RBI," he added.

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The Reserve Bank of India's key interest rate was raised by 50 basis points on Wednesday as widely expected, the second hike in as many months, in a bid to cool persistently high inflation in Asia's third-largest economy.

The Reserve Bank of India's key interest rate was raised by 50 basis points on Wednesday as widely expected, the second hike in as many months, in a bid to cool persistently high inflation in Asia's third-largest economy. The central bank also dropped the long-standing phrase that future policy would remain 'accommodative', reinforcing expectations of further rate hikes and other forms of tightening in coming months as fighting inflation becomes its main focus. "Upside risks to inflation as highlighted in last policy meetings have materialized earlier than expected," RBI Governor Shaktikanta Das said after the policy decision. Also read | RBI can use watermark figures of Rabindranath Tagore and APJ Abdul Kalam on currency instead of Mahatma Gandhi The monetary policy committee (MPC) raised the key lending rate or the repo rate by 50 basis points (bps) to 4.90%. The Standing Deposit Facility rate and the Marginal Standing Facility Rate were adjusted higher by the same quantum to 4.65% and 5.15%, respectively. Das had said earlier that a June 8 move was a "no brainer". But analysts polled by Reuters had been divided over how much it would hike, with forecasts ranging between 25 and 75 bps. Wednesday's increase follows a 40-bps rise in early May at an unscheduled meeting that kicked off the central bank's tightening cycle, which economists expect to be relatively short. "The more hawkish tone on inflation suggests to us that the MPC will continue to frontload policy tightening over the coming months, perhaps with another a 50bp hike in the next scheduled meeting in August," said Shilan Shah, senior India economist at Capital Economics. PRICE PRESSURES INTENSIFYING Das said inflation will likely remain above the RBI's upper tolerance band in the first three quarters of the financial year that started on April 1. "The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth," Das said. Retail inflation in April accelerated to 7.79% from a year earlier, above the RBI's tolerance band for inflation of 2% to 6% for a fourth month in a row, and a further rise in global prices of crude oil, food and other commodities is expected to keep up the upward pressure. The price spikes have hammered consumer spending and darkened the near-term outlook for India's economic growth, which slowed to the lowest in a year in the first three months of 2022. The RBI raised its inflation projection for 2022/23 to 6.7% from 5.7% earlier, while maintaining its growth projection at 7.2%. The central bank had slashed the repo rate by a total of 115 bps since March 2020 to soften the blow from the COVID-19 crisis. India's 10-year benchmark bond yield fell to a low of 7.43% from the day's high of 7.56% after the policy decision, while the rupee was little changed at 77.69 per dollar. Also read | India's central bank RBI hikes interest rate "The comment on the orderly completion of the government borrowing programme has served to cool the 10-year G-sec yield," said Aditi Nayar, chief economist at rating agency ICRA. India's NSE share index and the BSE index both recouped losses to trade up 0.2% each. [.BO] "We were expecting a cash reserve ratio hike of 50 bps which did not happen," said Vivek Kumar, economist at research firm QuantEco. "However, we would still expect some sort of a liquidity action in line with the assumption of guiding the overall surplus lower. This can happen via CRR route or via increased FX intervention (dollar sales) by the RBI," he added. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

RBI raises repo rate by 50bps to 4.9% to fight inflation pressure

In an unexpected move, RBI Governor Shaktikanta Das announced on Wednesday that the Monetary Policy Committee (MPC) unanimously voted to raise the policy repo rate by 40 basis points (bps) to 4.40 percent with immediate effect, citing persistent inflationary pressures in the economy.&nbsp;

The RBI has raised borrowing rates for the first time since August 2018.

The MPC has also opted to remain accommodative while focusing on withdrawal, implying a reversal of the rate action in 2020, which saw 75 basis points slashed after the world economy was thrown into disarray following the COVID-19 epidemic.

Explaining the decision, he said, "MPC decided to hold an off-cycle meeting to reassess the inflation-growth dynamics.&nbsp;There is a collateral risk of inflated inflation for a long time. "

Persistent inflation pressures are becoming more acute, Governor Shaktikanta Das said in an online briefing, adding that there is a risk that prices stay at this level for "too long" and expectations become unanchored.&nbsp;

The bank’s next scheduled rate decision isn’t until June 8.

As inflation rose, the RBI became more hawkish in its April policy, shifting its focus from growth to inflation.&nbsp;

In March, headline inflation was 6.95 per cent, exceeding the Reserve Bank of India's 6 per cent comfort level for the third month in a row.&nbsp;

Price pressures are expected to rise even more in the coming months, according to economists.

The highlights of the Governor of the Reserve Bank of India's speech are listed below:&nbsp;

<ol>
	<li>From May 21, the Cash Reserve Ratio will be increased by 50 basis points to 4.5 per cent. 
	&nbsp;</li>
	<li>Inflation must be controlled in order for the Indian economy to remain stable, according to RBI Governor Shaktikanta Das. He went on to say that measures to keep prices stable will aid financial and macroeconomic stability. 
	&nbsp;</li>
	<li>The threat of input cost pressure is fueling a new round of pricing hikes. He emphasised that price increases will have an impact on inflation. 
	&nbsp;</li>
	<li>Nine out of the 12 food subgroups registered an increase in inflation in the month of March. High-frequency price indicators for April indicate the persistence of food price pressures. 
	 
	&nbsp;</li>
</ol>

&nbsp;

In an unexpected move, RBI Governor Shaktikanta Das announced on Wednesday that the Monetary Policy Committee (MPC) unanimously voted to raise the policy repo rate by 40 basis points (bps) to 4.

In an unexpected move, RBI Governor Shaktikanta Das announced on Wednesday that the Monetary Policy Committee (MPC) unanimously voted to raise the policy repo rate by 40 basis points (bps) to 4.40 percent with immediate effect, citing persistent inflationary pressures in the economy. The RBI has raised borrowing rates for the first time since August 2018. The MPC has also opted to remain accommodative while focusing on withdrawal, implying a reversal of the rate action in 2020, which saw 75 basis points slashed after the world economy was thrown into disarray following the COVID-19 epidemic. Explaining the decision, he said, "MPC decided to hold an off-cycle meeting to reassess the inflation-growth dynamics. There is a collateral risk of inflated inflation for a long time. " Persistent inflation pressures are becoming more acute, Governor Shaktikanta Das said in an online briefing, adding that there is a risk that prices stay at this level for "too long" and expectations become unanchored. The bank’s next scheduled rate decision isn’t until June 8. As inflation rose, the RBI became more hawkish in its April policy, shifting its focus from growth to inflation. In March, headline inflation was 6.95 per cent, exceeding the Reserve Bank of India's 6 per cent comfort level for the third month in a row. Price pressures are expected to rise even more in the coming months, according to economists. The highlights of the Governor of the Reserve Bank of India's speech are listed below: From May 21, the Cash Reserve Ratio will be increased by 50 basis points to 4.5 per cent. Inflation must be controlled in order for the Indian economy to remain stable, according to RBI Governor Shaktikanta Das. He went on to say that measures to keep prices stable will aid financial and macroeconomic stability. The threat of input cost pressure is fueling a new round of pricing hikes. He emphasised that price increases will have an impact on inflation. Nine out of the 12 food subgroups registered an increase in inflation in the month of March. High-frequency price indicators for April indicate the persistence of food price pressures.

RBI hikes rates by 40 basis points with immediate effect: Governor Shaktikanta Das

RBI Governor Shaktikanta Das on Thursday announced MPC's accommodative stance, leaving repo rate, reverse repo rate, bank rate and MSF rate unchanged. The policy rate held its stance for the tenth consecutive time and was last revised on May 22, 2020 by the RBI.

RBI Guv announces unchanged rates, projects GDP growth at 7.8%

The Indian government said Shaktikanta Das has been re-appointed as the governor of the Reserve Bank of India (RBI) for another three years or until further orders.

The decision was approved by the cabinet`s appointments committee late on Thursday.

Das first took the helm in December 2018 and before that was the department of economic affairs secretary at the finance ministry.

To shore up the economy against the impact of the COVID-19 pandemic, the central bank has cut key interest rates to record lows and infused massive rupee liquidity into the banking system.

With markets now gearing up for the reversal of the ultra-loose monetary policy, stability at the RBI in terms of the top leadership is seen as crucial.

The central bank has taken a more consultative approach with markets under Das who has been keen to have more transparency and direct communication.

The Indian government said Shaktikanta Das has been re-appointed as the governor of the Reserve Bank of India (RBI) for another three years or until further orders.

The Indian government said Shaktikanta Das has been re-appointed as the governor of the Reserve Bank of India (RBI) for another three years or until further orders. The decision was approved by the cabinet`s appointments committee late on Thursday. Das first took the helm in December 2018 and before that was the department of economic affairs secretary at the finance ministry. To shore up the economy against the impact of the COVID-19 pandemic, the central bank has cut key interest rates to record lows and infused massive rupee liquidity into the banking system. With markets now gearing up for the reversal of the ultra-loose monetary policy, stability at the RBI in terms of the top leadership is seen as crucial. The central bank has taken a more consultative approach with markets under Das who has been keen to have more transparency and direct communication.

India re-appoints Das as RBI governor for another three years

Stating that "growth is of paramount importance now", India's Reserve Bank on Wednesday said it will do whatever it takes to sustain the fledgling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy.

Announcing the first monetary policy of fiscal 2022, the central bank left the key policy rate unchanged at 4 per cent for the fifth time in a row, after the rash of rate cuts earlier last fiscal.

It also assured of an indefinitely long period of accommodative policy stance which was topped by a historic move to commit its own balance sheet to the market with a new liquidity tool called 'the secondary market government securities acquisition programme' or G-Sap, under which it will buy government bonds worth Rs 1 lakh crore this quarter.

Addressing the media online, RBI Governor Shaktikanta Das said "as of now growth is of paramount importance...and we'll do whatever it takes to help sustain the recovery."

But he was quick to add that "inflation targeting is also important."

 
"More importantly, the government reiterating the plus-minus 2 per cent of 4 per cent inflation targeting gives us enough policy space to support growth as there are more downside risks to growth on the horizon now than in recent past which make growth...of paramount importance," he added. 
The central bank chose to retain its last forecast of 10.5 per cent GDP growth this fiscal, saying it is "too early to revise its own forecast done two months ago as we have just entered the new fiscal year."

Asked why the thrust was on growth despite pencilling in an upward inflation trajectory (5.2 per cent for the first half and 4.4 per cent for the second), and offering an indefinite period of accommodative policy stance, Das said, "We'll continue to be accommodative till growth becomes sustainable and we will do whatever it takes to achieve that."

Das continued to explain that "inflation is already in a well-entrenched and well-anchored framework now and so is inflation expectation, that's also well-anchored. This is very clear from the fact that the government notification has reiterated the plus-minus 2 per cent of 4 per cent inflation targeting."

"This framework gives RBI enough leeway gives enough policy tools to manage any extraordinary situations like the current pandemic.

"For the time being and at the current juncture, growth is of paramount importance, while of course keeping in mind inflation targeting is also important. After all, the the primary goal of the monetary policy is to maintain a certain level of inflation," he said.

However, the governor was quick to admit that the inflation outlook is uncertain.

On when the RBI will begin to exit the low reverse repo regime, Das said "that's something only time can decide. All I can tell you now is that we are accommodative and will remain so till we feel it is needed. So, we will have to wait when we will exit reverse repo."

His deputy Michael D Patra chipped in saying whenever the reverse repo is in operation, the policy is accommodative, parrying a direct response to a query on the impact of such high liquidity infusion on inflation.

On whether the RBI is anticipating some shocks to the system, Patra said, "We are mindful of the liquidity situation. And we will be mindful of taking a balanced action."

"To begin with, for the first in history, RBI is committing its balance sheet to the monetary policy under which we are committing to the market that we will give you Rs 1 trillion each quarter (up to Rs 3 trillion this fiscal), whether you want it or not, and irrespective of the market movement we will give you that amount of liquidity through the G-Sap," he said.

He went on to explain that when the policy rates are left unchanged, other tools are required to run the policy.

Patra said the bond buying is "an upfront assurance and is similar to what other major central banks are doing in buying the best and most secure assets, that is G-secs -- the benchmark for the entire money market."

"We are not leaving anything to the market to guess on the quantum, the timing or the demand or anything else. And this is a commitment to fund it from the RBI balance sheet itself," Patra said.

On maintaining the GDP forecast at the previous level of 10.5 per cent (26.2 per cent in Q1, 8.3 per cent in Q2, 5.4 per cent in Q3 and 6.2 per cent in Q4), Das said, "It is too early to give a guidance especially now the pandemic situation has become more uncertain due to the recent surge in infections. Also, we are at the beginning of a the new fiscal year."

"But at the same time I would like to like to say that the current situation is unlikely to impact the economy so much as it did this time last year because lockdowns are very selective this time. Also, many establishments, manufacturing units and businesses are fully operational and are better prepared to face the challenges now. And so are the general public.

"Therefore, we've reiterated our 10.5 percent forecast as the situation prevails today; and I don't think there is any significant upside risks to this as of now. Vaccine is an additional factor on the table which was not there last year. Overall we are better prepared.

"So whatever guidance we've given so far looks reasonable. Going forward we will be watchful, Das noted.

Stating that "growth is of paramount importance now", India's Reserve Bank on Wednesday said it will do whatever it takes to sustain the fledgling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy.

Stating that "growth is of paramount importance now", India's Reserve Bank on Wednesday said it will do whatever it takes to sustain the fledgling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy. Announcing the first monetary policy of fiscal 2022, the central bank left the key policy rate unchanged at 4 per cent for the fifth time in a row, after the rash of rate cuts earlier last fiscal. It also assured of an indefinitely long period of accommodative policy stance which was topped by a historic move to commit its own balance sheet to the market with a new liquidity tool called 'the secondary market government securities acquisition programme' or G-Sap, under which it will buy government bonds worth Rs 1 lakh crore this quarter. Addressing the media online, RBI Governor Shaktikanta Das said "as of now growth is of paramount importance...and we'll do whatever it takes to help sustain the recovery." But he was quick to add that "inflation targeting is also important." "More importantly, the government reiterating the plus-minus 2 per cent of 4 per cent inflation targeting gives us enough policy space to support growth as there are more downside risks to growth on the horizon now than in recent past which make growth...of paramount importance," he added. The central bank chose to retain its last forecast of 10.5 per cent GDP growth this fiscal, saying it is "too early to revise its own forecast done two months ago as we have just entered the new fiscal year." Asked why the thrust was on growth despite pencilling in an upward inflation trajectory (5.2 per cent for the first half and 4.4 per cent for the second), and offering an indefinite period of accommodative policy stance, Das said, "We'll continue to be accommodative till growth becomes sustainable and we will do whatever it takes to achieve that." Das continued to explain that "inflation is already in a well-entrenched and well-anchored framework now and so is inflation expectation, that's also well-anchored. This is very clear from the fact that the government notification has reiterated the plus-minus 2 per cent of 4 per cent inflation targeting." "This framework gives RBI enough leeway gives enough policy tools to manage any extraordinary situations like the current pandemic. "For the time being and at the current juncture, growth is of paramount importance, while of course keeping in mind inflation targeting is also important. After all, the the primary goal of the monetary policy is to maintain a certain level of inflation," he said. However, the governor was quick to admit that the inflation outlook is uncertain. On when the RBI will begin to exit the low reverse repo regime, Das said "that's something only time can decide. All I can tell you now is that we are accommodative and will remain so till we feel it is needed. So, we will have to wait when we will exit reverse repo." His deputy Michael D Patra chipped in saying whenever the reverse repo is in operation, the policy is accommodative, parrying a direct response to a query on the impact of such high liquidity infusion on inflation. On whether the RBI is anticipating some shocks to the system, Patra said, "We are mindful of the liquidity situation. And we will be mindful of taking a balanced action." "To begin with, for the first in history, RBI is committing its balance sheet to the monetary policy under which we are committing to the market that we will give you Rs 1 trillion each quarter (up to Rs 3 trillion this fiscal), whether you want it or not, and irrespective of the market movement we will give you that amount of liquidity through the G-Sap," he said. He went on to explain that when the policy rates are left unchanged, other tools are required to run the policy. Patra said the bond buying is "an upfront assurance and is similar to what other major central banks are doing in buying the best and most secure assets, that is G-secs -- the benchmark for the entire money market." "We are not leaving anything to the market to guess on the quantum, the timing or the demand or anything else. And this is a commitment to fund it from the RBI balance sheet itself," Patra said. On maintaining the GDP forecast at the previous level of 10.5 per cent (26.2 per cent in Q1, 8.3 per cent in Q2, 5.4 per cent in Q3 and 6.2 per cent in Q4), Das said, "It is too early to give a guidance especially now the pandemic situation has become more uncertain due to the recent surge in infections. Also, we are at the beginning of a the new fiscal year." "But at the same time I would like to like to say that the current situation is unlikely to impact the economy so much as it did this time last year because lockdowns are very selective this time. Also, many establishments, manufacturing units and businesses are fully operational and are better prepared to face the challenges now. And so are the general public. "Therefore, we've reiterated our 10.5 percent forecast as the situation prevails today; and I don't think there is any significant upside risks to this as of now. Vaccine is an additional factor on the table which was not there last year. Overall we are better prepared. "So whatever guidance we've given so far looks reasonable. Going forward we will be watchful, Das noted.

Supporting growth paramount for RBI now: Governor Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das said on Sunday he had tested positive for the coronavirus, the latest high profile name in the country to contract the virus.

"I have tested Covid-19 positive. Asymptomatic. Feeling very much alright," Das said in a tweet.

"Will continue to work from isolation. Work in the RBI (Reserve Bank of India) will go on normally," he said.

Over 7.8 million Indians have tested positive for COVID-19 so far. The pandemic has claimed 118,534 lives in the world's second most populous country.

Several Indian politicians including Home Minister Amit Shah and actors such as Amitabh Bachchan have tested positive for the virus, and since recovered.

&nbsp;

Reserve Bank of India Governor Shaktikanta Das said on Sunday he had tested positive for the coronavirus, the latest high profile name in the country to contract the virus.

Reserve Bank of India Governor Shaktikanta Das said on Sunday he had tested positive for the coronavirus, the latest high profile name in the country to contract the virus. "I have tested Covid-19 positive. Asymptomatic. Feeling very much alright," Das said in a tweet. "Will continue to work from isolation. Work in the RBI (Reserve Bank of India) will go on normally," he said. Over 7.8 million Indians have tested positive for COVID-19 so far. The pandemic has claimed 118,534 lives in the world's second most populous country. Several Indian politicians including Home Minister Amit Shah and actors such as Amitabh Bachchan have tested positive for the virus, and since recovered.

RBI Governor Shaktikanta Das tests positive for coronavirus

According to experts, in the next monetary policy review, the RBI chairman may cut the policy rate repo by 0.25 percent

RBI may reduce interest rates by another 0.25 bps to revive economy

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the country's economy has started showing signs of normalcy with easing of more than two months of coronavirus-induced lockdown restrictions. The medium-term outlook for the Indian economy, however, remains uncertain with supply chains and demand yet to be fully restored while the trajectory of the coronavirus spread and the length of its impact remain unknown, he added.

The RBI chief also said the coronavirus pandemic has so far been the "biggest test of robustness and resilience of India's economic and financial system".

"Coronavirus pandemic perhaps represents so far the biggest test of robustness and resilience of our economic and financial system," Shaktikanta Das said, in his keynote address at the 7th SBI Banking and Economics Conclave.

According to most estimates, the Indian economy will register a record contraction of over 4.5% in the current fiscal year that started on April 1 due to the pandemic.

Starting late March, the country was placed under one of the strictest lockdowns in the world for over two months. Since early June, the government has started easing restrictions to help some revival in the economy even though the number of infections in the country continues to rise.

"The Indian economy has started showing signs of getting back to normalcy in response to the staggered easing of restrictions. It is, however, still uncertain when supply chains will be restored fully -- how long it will take for demand conditions to normalise and what kind of durable effects the pandemic will leave behind on our potential growth," he said.

Das said that the 2008 global crisis and the current crisis show that such economic shocks have "fatter tails" than generally believed, and that the country's financial system should have larger capital buffers.

A recapitalisation plan for Indian banks is necessary as the economic impact of the pandemic may result in higher bad loans and erosion of capital for banks, the RBI governor added.

The central bank has cut policy rates by 115 basis points in response to the pandemic, resulting in a total policy rate reduction of 250 basis points since February 2019, along with providing liquidity of Rs 9.57 trillion ($127.28 billion).

It has also eased some bad loan provisioning norms and allowed loan moratoriums for retail customers.

Das said that the central bank has to carefully unwind the unusual monetary and regulatory measures taken to cushion the economic shocks in the post pandemic world, as the financial sector should return to normal functioning without relying on the regulatory relaxations as the new norm.

The RBI chief also said inflation would continue to moderate going forward and investment activity will revive.

India recorded 27,114 coronavirus cases in the last 24 hours, taking the total to 8,20,915 including 22,123 dead.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the country's economy has started showing signs of normalcy with easing of more than two months of coronavirus-induced lockdown restrictions.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the country's economy has started showing signs of normalcy with easing of more than two months of coronavirus-induced lockdown restrictions. The medium-term outlook for the Indian economy, however, remains uncertain with supply chains and demand yet to be fully restored while the trajectory of the coronavirus spread and the length of its impact remain unknown, he added. The RBI chief also said the coronavirus pandemic has so far been the "biggest test of robustness and resilience of India's economic and financial system". "Coronavirus pandemic perhaps represents so far the biggest test of robustness and resilience of our economic and financial system," Shaktikanta Das said, in his keynote address at the 7th SBI Banking and Economics Conclave. According to most estimates, the Indian economy will register a record contraction of over 4.5% in the current fiscal year that started on April 1 due to the pandemic. Starting late March, the country was placed under one of the strictest lockdowns in the world for over two months. Since early June, the government has started easing restrictions to help some revival in the economy even though the number of infections in the country continues to rise. "The Indian economy has started showing signs of getting back to normalcy in response to the staggered easing of restrictions. It is, however, still uncertain when supply chains will be restored fully -- how long it will take for demand conditions to normalise and what kind of durable effects the pandemic will leave behind on our potential growth," he said. Das said that the 2008 global crisis and the current crisis show that such economic shocks have "fatter tails" than generally believed, and that the country's financial system should have larger capital buffers. A recapitalisation plan for Indian banks is necessary as the economic impact of the pandemic may result in higher bad loans and erosion of capital for banks, the RBI governor added. The central bank has cut policy rates by 115 basis points in response to the pandemic, resulting in a total policy rate reduction of 250 basis points since February 2019, along with providing liquidity of Rs 9.57 trillion ($127.28 billion). It has also eased some bad loan provisioning norms and allowed loan moratoriums for retail customers. Das said that the central bank has to carefully unwind the unusual monetary and regulatory measures taken to cushion the economic shocks in the post pandemic world, as the financial sector should return to normal functioning without relying on the regulatory relaxations as the new norm. The RBI chief also said inflation would continue to moderate going forward and investment activity will revive. India recorded 27,114 coronavirus cases in the last 24 hours, taking the total to 8,20,915 including 22,123 dead.

Signs of normalcy in India's economy but medium-term outlook uncertain: RBI chief

Reserve Bank of India Governor Shaktikanta Das today cut reverse repo rate by 25 basis points to 3.75%, while keeping repo rate unchanged

RBI Governor Shaktikanta Das cuts reverse repo rate 25 bps

Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth.

"For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround &amp; resume its pre-COVID, pre-slowdown trajectory by growing at 7.4% in 2020-21," &nbsp;he said in his address to media.

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Shaktikanta Das unveiled measures to ease liquidity and bank credit; and to support the economy and enable normal functioning of markets, as part of the economic relief to mitigate the fallout of coronavirus lockdown.

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"Targeted Long-Term Repo Operation (TLTRO) auction of Rs 25,000 crore to be conducted today."

"RBI has targetted sectors that have face difficulty in accessing the market or don't have adequate liquidity." 
 
Reverse repo rate cut by 25 basis points from 4 per cent to 3.75 per cent. The cut in reverse repo rate is to encourage banks to lend more, said RBI Governor Shaktikanta Das.

Das announced that Rs 6.9 lakh crore absorbed by RBI on April 15 using reverse repo rate.

"Non-banking finance companies can also avail relaxed non-performing assets (NPA) classification to their borrowers," said RBI governor Shaktikanta Das.

"To maintain the bank's health, RBI said that the lenders will have to maintain 10% higher provisions on accounts. Non-performing classification will exclude moratorium period sais RBI Governor.RBI increases WMA limits by 60 per cent, to plan their market borrowings better. The facility will be available until September 30," said RBI governor Shaktikanta Das. 
 
Mentioning the economical difficulties generated by coronavirus crisis RBI Governor Shaktikanta Das said that today humanity is facing the trial of its time, as COVID-19 grips the world with its deadly embrace. In this kind of environment Reserve Bank of India (RBI) has been very proactive &amp; monitoring the situation closely.

Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth. "For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP.

Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth. "For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround & resume its pre-COVID, pre-slowdown trajectory by growing at 7.4% in 2020-21," he said in his address to media. RBI Governor Shaktikanta Das addresses media https://t.co/CmP3VMD9Rl — WION (@WIONews) April 17, 2020 × Shaktikanta Das unveiled measures to ease liquidity and bank credit; and to support the economy and enable normal functioning of markets, as part of the economic relief to mitigate the fallout of coronavirus lockdown. #LIVE | TLTRO auction of Rs 25,000 crore to be conducted today, announces @RBI Governor @DasShaktikanta pic.twitter.com/QOycHHSea3 — WION (@WIONews) April 17, 2020 × "Targeted Long-Term Repo Operation (TLTRO) auction of Rs 25,000 crore to be conducted today." "RBI has targetted sectors that have face difficulty in accessing the market or don't have adequate liquidity." Reverse repo rate cut by 25 basis points from 4 per cent to 3.75 per cent. The cut in reverse repo rate is to encourage banks to lend more, said RBI Governor Shaktikanta Das. Das announced that Rs 6.9 lakh crore absorbed by RBI on April 15 using reverse repo rate. "Non-banking finance companies can also avail relaxed non-performing assets (NPA) classification to their borrowers," said RBI governor Shaktikanta Das. "To maintain the bank's health, RBI said that the lenders will have to maintain 10% higher provisions on accounts. Non-performing classification will exclude moratorium period sais RBI Governor.RBI increases WMA limits by 60 per cent, to plan their market borrowings better. The facility will be available until September 30," said RBI governor Shaktikanta Das. Mentioning the economical difficulties generated by coronavirus crisis RBI Governor Shaktikanta Das said that today humanity is facing the trial of its time, as COVID-19 grips the world with its deadly embrace. In this kind of environment Reserve Bank of India (RBI) has been very proactive & monitoring the situation closely.

India's growth among best in G20 nations; GDP to grow at 7.4% in 2021-22, says RBI chief

'India's GDP to grow at 7.4% in 2021-22' says RBI Governor

RBI governor Shaktikanata Das address amid Covid-19 outbreak. Rbi lowered the key repo rate by 75 basis points (bps) to 4.4 per cent, to help the economic slowdown in the wake of the coronavirus outbreak. The reverse repo rate now stands at 4 per cent, down 90 bps.

RBI briefing amid coronavirus outbreak | Slashes Repo rate by 75 bps

Rbi holds a press conference on Yes Bank crisis. Rbi Governor Shaktikanta Das says, Depositors money is safe, Customers need not to worry.

Yes Bank Crisis: Rbi says, Depositor's money is safe

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