RBI Credit Policy Highlights – Top 10 Points: Missed announcement? Know key takeaways in brief
RBI Credit Policy: The Reserve Bank of India Governor Shaktikanta Das today made the bimonthly policy announcements. Know the top 10 announcements made by the Governor after days of deliberation by the Monetary Policy Committee (MPC). See highlights here!
RBI Credit Policy Highlights: RBI Governor Shaktikanta Das announcements
3. CPI inflation rose sharply to 7.3 per cent in September and further to 7.6 per cent in October 2020. Outlook for inflation has turned adverse relative to expectations in the last two months. CPI inflation is projected at 6.8 per cent for Q3 2020-21, 5.8 per cent for Q4:2020-21 and 5.2 to 4.6 per cent in H1 2021-22.
4. Recovery in rural demand is expected to strengthen further, while urban demand is also gaining momentum.
5. Private investment is still slack and capacity utilisation has not fully recovered.
6. Exports are on an uneven recovery, the prospects have brighteneed with the progress on the vaccines.
7. Real GDP growth is projected at (-) 7.5 per cent in 2020-21; (+) 0.1 per cent in Q3 of 2020- 21 and (+) 0.7 per cent in Q4 of 2020-21; and 21.9 per cent to 6.5 per cent in H1 of 2021- 22.
8. On-tap targeted long term repo operations to be expanded to cover other stressed sectors in synergy with the credit guarantee available under the Emergency Credit Line Guarantee Scheme (ECLGS 2.0) of the Government. This will encourage banks to extend credit support to stressed sectors at lower cost.
9. Regional Rural Banks to be allowed to access the LAF and MSF of the RBI; and also the Call/Notice money market. Commercial and co-operative banks to retain profits; not make any dividend pay-out from the profits for financial year 2019-20.