RBI press conference LIVE: It is supervisory action on Paytm, says Guv Das

RBI MPC Meeting Live Updates: RBI's MPC which began on February 6 has concluded today. The Central bank's MPC has decided to keep the repo rate unchanged at 6.5%. Catch all updates here

Reserve Bank of India Governor Shaktikanta Das on Thursday addressed the elephant in the room, Paytm and said that the action on this individual entity was a supervisory action. He further added that there is no worry about the system, we are only talking about a specific payments bank. 

Reserve Bank of India (RBI) Governor Shaktikanta Das began a press conference after the monetary policy meeting. During the MPC meet, the repo rate was unchanged for the sixth consecutive time at 6.5 per cent. The MPC also maintained its stance of 'withdrawal of accommodation', while the retail inflation for FY24 was projected at 5.4 per cent.

Reserve Bank of India Governor Shaktikanta Das begins announcing the decision made by the six-member monetary policy committee (MPC) meeting which was held from February 6-February 8. For the sixth consecutive time, the MPC has decided to keep the repo rate unchanged at 6.5 per cent and it has also maintained its stance of withdrawal of accommodation. The MPC has projected retail inflation for the current fiscal at 5.4 per cent and for FY24-25 at 4.5 per cent. 

The Reserve Bank of India (RBI) held its first monetary policy committee (MPC) meeting of 2024 from February 6-February 8. It is also the first MPC meet post the announcement of the interim Budget by the Modi government ahead of the general elections. The MPC is expected to hold the repo rate or interest rate steady for the sixth consecutive time. Governor Shaktikanta Das will announce the minutes of the meeting today. 

1:22 PM

Deputy Governor Swaminathan declines to specify on shortcomings by Paytm

The Governor declined to specify the specific shortcomings resulting in the RBI action, but made it clear that it is driven by a "lack of compliance" at Paytm. 

1:02 PM

RBI post-MPC conference: India's financial system really strong, assures Governor Das

Overall financial sector of the country is really strong, assures Governor Das

12:57 PM

RBI post-MPC conference: Guv Das comments on pre conditions for stance to change to neutral

When such a thing happens, we will explain how it is. The evolving situation continues to be volatile and uncertain, says Guv Das

12:53 PM

What goes into the nominal GDP is not CPI inflation, it is the GDP deflate: Michael Patra

What goes into the nominal GDP is not CPI inflation, it is the GDP deflate, says Michael Patra

12:49 PM

RBI post-MPC conference: Guv clarifies on use of hidden costs, says terms and conditions are transparent

The banks' terms and conditions are very transparent, clarifies Guv Das

12:31 PM

RBI post-MPC conference: Guv Das shares key inputs on the ongoing Paytm fiasco

"There is no worry about the system, at the moment". He further adds we are talking about a specific institution, a specific payment bank. I don't want to comment on a specific case", says Das. 

Here's what Das said: 

• Significantly deepened our supervisory system, approach, and methods
• Our emphasis is always on bilateral engagement with the regulated entity, with focus on nudging them for corrective action
• When the regulated entity does not take effective action, we go for imposing supervisory or business restrictions
• The restrictions that we impose are always proportionate to the gravity of the situation
• All our actions, being a responsible regulator, are in the best interest of systemic stability and protection of depositors' interest
• We will be issuing an FAQ in the next week to address clarifications regarding Paytm
• The Reserve Bank is and will continue to support innovation and technology in the financial sector

12:24 PM

RBI post-MPC conference: Guv Das comments on the ongoing Paytm fiasco

If everything had been complied with, why should RBI act against a regulated entity, asks RBI Guv Shaktikanta Das, without naming Paytm. He further added, tha there is no worry about the system, we are only talking about a specific payments bank.

12:23 PM

RBI post-MPC conference: Dy Guv Swaminathan comments on transmission

The rates on deposit side resets much faster, while on the lending side, it does take some time to pass, says Deputy Guv Swaminathan

12:20 PM

RBI post-MPC press conference: We don't comment on individual entity, says Swaminathan

As a matter of policy, we don't comment on individual entity or actions that we initiate, says Dy Guv Swaminathan

12:18 PM

The stance is all about the future course of policy rates, says Dy Guv Michael Patra

The stance is all about the future course of policy rates, says Dy Guv Michael Patra

12:17 PM

Took action on Paytm for consistent non-compliance, says Guv Das

Took action on Paytm for persistent non-compliance, says Dy Guv Swaminathan

12:08 PM

RBI Guv Shaktikanta Das begins press conference post MPC meet discussion

RBI Governor Shaktikanta Das began a press conference after the monetary policy committee meeting discussion during which the Governor announced that the repo rate would remain unchanged for the sixth consecutive time.

 

11:47 AM

RBI MPC meet update: Central bank to introduce offline e-rupee transactions soon, says Das

Digital rupee users will soon be able to execute transactions in areas with limited internet connectivity, announced Governor Shaktikanta Das on Thursday

11:36 AM

Indian rupee trading on flat note after RBI monetary policy decision

The rupee was trading on a flat note after the Reserve Bank of India (RBI) on Thursday decided to keep policy rate unchanged for the sixth time in a row to maintain a tight vigil on inflation.

 

At the interbank foreign exchange, the rupee opened at 82.94 against the dollar and was trading at 82.96 against the greenback, unchanged from its previous close, as the central bank retained the repo rate at 6.5 pc for the sixth consecutive time.

11:07 AM

RBI MPC meet update: Here's what Governor Shaktikanta Das had to say on public debt levels

"Amidst the current headwinds elevated levels of public debt are raising serious concerns on macroeconomic stability in many countries, including some of the advanced economies. The global public debt to GDP ratio is projected to reach 100% by the end of this decade. The public debt levels in advanced economies, in fact, are much higher than those in the emerging market economies. The challenges of debt sustainability in an environment of high-interest rates and low growth at the global level can become new sources of stress. Reducing debt burdens is necessary to create fiscal space for new investments in priority areas, including green transition", says RBI Governor Shaktikanta Das