Repo rate and reverse repo rate `as it was’ – Navshakti

Repo rate and reverse repo rate `as was’

RBI announces credit policy

The RBI has expressed concern over rising inflation, which will see it invest Rs 1 lakh crore in the quarter by buying government bonds

Retail inflation to remain at 4.4 – 5.2 per cent in FY, farmers allowed to raise loans, local lockout

Priority area from banks to NBFCs

Six-month loan extension

Mumbai: In the wake of the Corona crisis and rising inflation, the Reserve Bank of India (RBI) has said it will not change its credit policy. It will invest Rs 1 lakh crore in the quarter by buying government bonds. After a three-day credit policy review meeting, RBI Governor Shaktikanta Das today announced the credit policy. Borrowers, meanwhile, have been relieved to keep the repo rate at 4 per cent and the reverse repo rate at 3.35 per cent. In the current financial year, retail inflation is projected at 4.4 – 5.2 per cent. At present, there is no need for a moratorium on debt repayment due to local layoffs due to the growing number of patients. The industry-business situation is ready to face, Das said. The RBI has also given a six-month extension to NBFCs in the ‘priority sector lending’ category to boost the economy from agriculture, MSMEs and housing. The decision has been taken to provide credit to the sector through banks.

As part of the promotion of agricultural credit, the RBI has allowed the bank to increase the eligibility limit for personal loans to farmers to Rs 75 lakh. Earlier, the limit was Rs 50 lakh.

The IBI has decided to keep the repo rate unchanged and interest rates will remain unchanged. So while the burden of EMIs on borrowers has not increased, there has been no relief.

The credit policy review committee was meeting from Monday. After today’s meeting, Shaktikant Das announced the credit policy. Although corona infections are on the rise, the economy seems to be improving. However, the increase in the number of patients has also added to the uncertainty. Even so, the Reserve Bank of India is ready to meet the challenges, he said.

Earlier, the bank had kept interest rates unchanged in a credit policy review in February. Inflation rose to 5 per cent in February. This rate is higher than the target set by the Reserve Bank. Food prices will depend on supply and monsoon performance in the near future, said Shaktikant Das.

The RBI has also expressed concern over rising inflation. Inflation will be 5 per cent in the fourth quarter of 2021, 4.4 per cent in the first half of 2021-22 and 5.1 per cent in the third quarter, the RBI has forecast. Measures to boost development will be taken by the bank and there will be a credit policy, Das said.

The crisis of the Corona epidemic is growing. Therefore, in order to revive the economy, the review committee decided to continue with the previous credit policy. So while the borrowers have not received any relief in the EMI, there has been no respite.

According to figures released by the Ministry of Health on Tuesday morning, 96,982 crore infected patients were added in India in the first 24 hours of Monday. On the same day, 50,143 people were discharged from the hospital while 446 patients died. Concerns were raised by the bank. Newly imposed restrictions will hamper development, Das said.

Tags: Corona Virus, Mumbai, Repo Rate, shaktikant das

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