Insta
Shaktikanta Das (Photo by Vipin Kumar/Hindustan Times via Getty Images)
Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday (6 August) announced crucial policy decisions at the Bank's bi-monthly monetary policy press conference, Hindustan Times reported.
The RBI, taking an important decision, left the repo and reverse repo rates unchanged at 4 per cent and 3.3 per cent respectively.
The RBI governor held the press meet via video conferencing given the risks of COVID-19 spread.
The Monetary Policy Committee (MPC) of the central bank has maintained the repo rate -- or short-term lending rate for commercial banks, The governor said.
Das said, the MPC has noted that economic activities had started to recover in India, but, he added, "surges of fresh infections have forced fresh lockdowns, hence several high-frequency indicators have levelled off."
The MPC also voted to maintain accommodative stance, thus opening up possibilities for more future rate cuts.
Addressing the hardships that the economy is facing due to COVID-19 pandemic, the central bank said the MSME borrowers will remain eligible for restructuring of debt, if their accounts were classified standard.
"With COVID19 infections rising under fragile micro-economic and financial conditions, we propose to take regulatory and developmental measures - enhance liquidity support for financial markets, ease financial stress caused by COVID19 while strengthening credit discipline, improve the flow of credit, deepen digital payment systems and facilitate innovations by leveraging technology," said Das.
Das also told that the RBI is "perhaps the only central bank in the world which has set up a special quarantine facility" to maintain the continuity of critical operations.
(With inputs from IANS)
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest