 "Money, Rs 2000, 200 notes, Rupees")
Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday the Monetary Policy Committee's decision to leave the repo rate unchanged at 6.5 per cent. Following the announcement, in a press conference, Das mentioned the volume of Rs 2,000 banknotes that were yet to be returned.
Responding to a question, Das stated that Rs 12,000 crore out of the Rs 3.56 trillion worth of Rs 2,000 notes in circulation as of May 19, 2023, have yet to be returned.
Last week, the RBI had indicated that Rs 3.42 trillion worth of notes had been received back as of September 29, and Rs 14,000 crore was still outstanding. The central bank also extended the deadline for the return of the notes by a week to October 7.
Das also noted that the RBI will "actively" manage liquidity in the economy. He announced that the RBI will undertake open market operations (OMOs) to manage liquidity in the domestic economy, which will take place via auction. However, no date has been specified yet.
Das added that the RBI aims to "emphatically" focus on the 4 per cent headline inflation target, and until the price rise figure decreases, the monetary policy will be "actively disinflationary".
"As the banker to the government, the RBI has no concerns about the central government's finances," Das stated. The RBI also flagged the steep growth of personal loans in India.
During the press conference, Deputy Governor J Swaminathan stated that the "outlier" loan growth of 33 per cent, as opposed to the overall credit growth of 13-14 per cent, led the RBI to highlight the issue of personal loans and prompt banks to take steps to mitigate any risk build-up.
Das encouraged financiers to "identify where the crisis is likely to emerge" and take appropriate measures.
The Governor also stated that the gross non-performing assets showed improvement in the June quarter, according to unaudited results.
(With agency inputs)
