LIVE: RBI says will undo damage inflicted on economy by Covid-19 in FY21-22

RBI Monetary policy LIVE updates: MPC voted unanimously to keep rates unchanged, said RBI governor Shaktikanta Das. Stay tuned for all the LIVE updates

RBI monetary policy live updates: The Monetary Policy Committee (MPC) of the Reserve Bank of India on Friday decided to keep repo rate unchanged at 4 per cent, said Governor Shaktikanta Das. The reverse repo rate stays at 3.35 per cent, he said. On a review of monetary and liquidity conditions it was decided to restore CRR in two phases --- CRR will be raised to 3.5% from March 27 and 4% from May 22.

In a major reform, RBI proposed to provide retail investors access to government bond market, both primary and secondary, directly through the central bank. Retail investors would now have direct access to participate in the G-Sec market.

In his closing remarks, RBI governor Shaktikanta Das said, “going forward the Indian economy is poised to move in only one direction which is upwards. It is our strong conviction backed by forecasts, that in FY22 we will undo the damage that Covid-19 has inflicated the economy. After the chaos and dispair of the year gone by through which we have sailed together, we shall continue to sail ahead.”

The RBI last changed policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
 

This was the first meeting of the six-member MPC since Finance Minister Nirmala Sitharaman presented Budget 2021 in the Lok Sabha on February 1, amid the Covid-19 pandemic.

Stay tuned for RBI Monetary policy LIVE updates

1:02 PM

With gilt account scheme, we aim to provide another avenue to retail investors, says RBI guv

Q. What was the thought process behind the retail gilt account scheme? Could you also explain how retail will be defined. 

 

Ans: The thought process was mainly to provide another avenue to retail investors. As regards other details, I advise you wait for our further communication: Das  

1:01 PM

RBI governor on PMC Bank

Q. Any decision on the three potential investors in PMC Bank? 

 

Ans: I have been informed that three final offers have been received. PMC Bank itself is evaluating the offer. They will approach us once their evaluation is over: Das

12:51 PM

We are doing what an AQR is supposed to do: Das

We have deepened our supervision to get a clear picture of stressed or bad assets. Similarly, for banks, we are doing a deep dive and  making our own assessments. We are exactly doing what an AQR is supposed to do: Das

 

12:49 PM

RBI Governor on stress for banks

Stress for banks: We have been collecting from banks data related to their stressed assets. We are also taking up with banks that they make provisions. Many have done that, which is a positive sign. Data is flowing to us on a daily basis. We are constantly monitoring the situation: Das

 

12:48 PM

We have moved beyond pend-up demand. Demand will only pick up from here, says Shaktikanta Das

Are we sure that the growth projections are now driven by consumer demand and not pent-up demand?

We are tracking high-frequency indicators. All all of them indicate that demand is actual. We have moved beyond pend-up demand. Demand will only pick up from here. Demand curve is expected to be more sustained: Das

 

12:47 PM

Our first objective is to protect our market from global spillover, says RBI Dy guv Patra

Our first objective is to protect our market from global spillover. There is a hunt for yields. There have been spikes. We are watchful of them: Patra

 

12:46 PM

We are watchful of the forward premia rates. India continues to attract a lot of forex, says Guv Das

Forward premia rates: We are watchful of the forward premia rates. India continues to attract a lot of forex. We have taken measures as and when necessary. We would continue to do so, says Das.

12:46 PM

Will come out with details on retail participation in G-Sec market very soon, says RBI Dy Guv Kanungo

Will come out with details on retail participation in G-Sec market very soon, says RBI Dy Guv Kanungo

12:44 PM

RBI Governor Shaktikanta Das on Monetary policy review

Q: As regards bad banks, we thought there was going to be an ARC, but from Budget it seems it will be an AMC. What is it going to be?


A: There have been discussions between the RBI and government. We are awaiting a formal proposal from the government. It would not be right to comment before we receive it, says Guv Das.

 

12:43 PM

Will examine comments on draft NBFC Regulations, says RBI guv

Will examine comments on draft NBFC Regulations, says RBI guv

12:41 PM

Will come out with details on retail particpation in G-Sec market very soon, says Shaktikanta Das

Will come out with details on retail particpation in G-Sec market very soon, says Shaktikanta Das

12:40 PM

Is there a disconnect between what the market requires and what the RBI is providing them?

Shaktikanta Das says, "Sometimes the market takes a little more time to understand our communication. But over time they appreciate our efforts more. The situation is constantly evolving."

 

12:38 PM

What impact will the retail direct scheme have on the overall banking system?

To this, RBI governor Shaktikanta Das says, as the GDP grows and the economy comes back to a growth path, banks have several other services that they offer. So their business will not get affected. If anything, it will serve as another great avenue for investors to benefit from.

 

12:36 PM

Focus on governance is a common feature of our supervisory and regulatory standpoint: Das

Focus on governance is a common feature of our supervisory and regulatory standpoint, says Shaktikanta Das.

12:36 PM

HTM dispensation will help banks in view of the government's borrowing programme: Dy Guv Michael Patra

HTM dispensation will help banks in view of the government's borrowing programme: Dy Guv Michael Patra