RBI policy highlights: Prioritising inflation over growth, says Das

RBI Monetary policy updates: As expected by market participants, RBI retained status quo on key interest rates. Governor Shaktikanta Das said. "Approach needs to cautious, but proactive". Stay tu

12:56 PM

RBI ready to launch pilot projects for digital rupee

The Reserve Bank of India is in position to start off with pilot projects on its central bank digital currency, or digital rupee, Deputy Governor T Rabi Sankar says. "[We] Will start with a calliberated approach, in a non-disruptive manner," Sankar says. "...will probably start with the wholesale piece since it is easier to implement."

12:40 PM

M Rajeshwar Rao on KYC issues at regulated entities

The Reserve Bank of India is internally looking at the know-your-customer issues at regulated entities, Deputy Governor M Rajeshwar Rao says. "We will continue to monitor the developments... If any action is necessary, [it] will be taken," he says. "...have to ensure that any actions taken by the RBI are taken under PMLA (Prevention of Money-Laundering Act) rules."

12:30 PM

HDFC-HDFC Bank merger proposal under examination, says RBI governor

HDFC-HDFC Bank merger proposal under examination, says RBI governor

12:29 PM

RBI Monetary Policy LIVE: SDF will give us flexibility without the constraint of a collateral

RBI Monetary Policy LIVE: SDF will give us flexibility without the constraint of a collateral. Both SDF & MSF will now move in tandem with any future revision in repo rate. Don't think RBI is behind the curve, G-SAP stopped in October 2021, outright open market operations have been far less: RBI Governor Shaktikanta Das

12:24 PM

We have stopped G-sec last year while advanced economies still reducing bond purchases: RBI Guv

RBI Guv says the central bank is not behind the curve. We have stopped G-sec last year while advanced economies still reducing bond purchases

 

12:20 PM

Shaktikanta Das lists out seven points in RBI's policy

There are seven things which we have done in this policy announcement, RBI Governor Shaktikanta Das says. 

 

— Revised inflation due to war induced factors and revised growth projections. 

— In sequence of priorities have put inflation before growth. 

— Stance continues to be accomodative while focussing on withdrawal of the accomodation which has been there for more than two years. 

— LAF corridor has been normalised to 50 bps. 

— SDF has been introduced and will be bottom of the corridor. 

— Announced that liquidity withdrawal will be done over a multi-year timeframe. 

— Situation is dynamic and fast-changing and all our actions will be tailored accordingly.

12:14 PM

SDF has been introduced and now it is the bottom of the corridor: Shaktikanta Das

SDF has been introduced and now it is the bottom of the corridor: Shaktikanta Das

12:13 PM

Inflation projections primarily revised upwards due to war-induced factors, says Das

 Inflation projections primarily revised upwards due to war-induced factors. In the sequence of priorities, we have now put inflation before growth. Time is appropriate to prioritise inflation ahead of growth: RBI Governor Shaktikanta Das

12:09 PM

Economic situation is dynamic and fast changing, actions will be tailor-made according to it, says Das

Economic situation is dynamic and fast changing, actions will be tailor-made according to it, says Das

12:07 PM

RBI policy stance still accomodative, but focussed on withdrawing accomodation: RBI governor Shaktikanta Das

RBI policy still accomodative, but focussed on withdrawing accomodation: RBI governor Shaktikanta Das

12:06 PM

In the last three years, RBI prioritised growth over inflation, that has changed now: RBI guv

In the last three years, RBI prioritised growth over inflation, that has changed now: RBI guv

12:04 PM

RBI Monetary policy LIVE updates: Shaktikanta Das interacts with the media

RBI Monetary policy LIVE updates: Shaktikanta Das interacts with the media

11:39 AM

RBI Monetary policy LIVE: Governor Shaktikanta Das to address media shortly

RBI Monetary policy LIVE: Governor Shaktikanta Das to address media shortly

10:54 AM

RBI MPC LIVE: RBI Governor on cardless cash withdrawal

The system of cardless cash withdrawal will be made available across all banks and ATM networks using UPI, says RBI governor. Net worth requirement for Bharat Bill Payments System Operating Units lowered from Rs 100 crore to Rs 25 crore.

10:54 AM

RBI is not hostage to any rule book, says Shaktikanta Das

RBI is not hostage to any rule book, no option is off the table when the need of the hour is to safeguard economy, Das says. "The sky today maybe overcast with clouds but we will use all our energy and resources to let the sunlight illuminate India's future," he says.

10:48 AM

Cardless cash withdrawal to be made available: RBI

RBI Guv said the system of cardless cash withdrawal will be made available across all banks and ATM networks using UPI. Das also said that net worth requirement for Bharat Bill Payments System Operating Units has been lowered from Rs 100 crore to Rs 25 crore.

10:47 AM

RBI governor on Housing loans

Rationalisation of risk weights for individual housing loans to be extended till March 31, 2023, says the RBI governor.

10:46 AM

RBI on liquidity framework

The Reserve Bank of India has tweaked its liquidity framework, introducing the standing deposit facility through which it will absorb surplus liquidity. While the reverse repo window remains, it will no longer be an active part of liquidity management. "RBI will continue two-way liquidity management approach of VRRR auction of varying maturities and VRR auctions," Das said.

10:40 AM

RBI sees Current account deficit (CAD) at sustainable levels and forex reserves at $606.5 billion

RBI sees Current account deficit at sustainable levels and forex reserves at $606.5 billion

10:40 AM

RBI Monetary Policy LIVE Updates: RBI Governor Shaktikanta Das announces

-- Held-to-maturity limit to revert to 22 percent of banks' net demand and time liabilities in FY24. 

-- RBI also proposes panel to review status of customer service at RBI-regulated entities

-- Cardless cash withdrawal to be made available at all bank branch and ATMs via UPI, to prevent frauds. To secure payment systems, propose guidelines for such operators

-- BBPS has seen rise in volumes, to encourage this further, propose to reduce networth requirement for such entities to Rs 25 crore vs Rs 100 crore

10:38 AM

RBI Monetary Policy LIVE: SDF, MSF will be available from 5:30 pm till midnight all days of the week

RBI Monetary Policy LIVE Updates: SDF, MSF will be available from 5:30 pm till midnight all days of the week. Money market opening time restore to 9:00 am, which is the pre-pandemic time.

10:35 AM

Robust rabi crop should support rural demand; pickup in contact-intensive services to help boost urban demand

Robust rabi crop should support rural demand; pickup in contact-intensive services to help boost urban demand: Das

 

10:35 AM

RBI Monetary policy LIVE updates: GDP forecast for FY23

Q1FY23: 16.2%

Q2FY23: 6.2%

Q3FY23: 4.1%

Q4FY23: 4%

10:33 AM

RBI MPC LIVE Updates: Normalisation of Liquidity Adjustment Facility corridor

Normalisation of Liquidity Adjustment Facility (LAF) corridor done today should not come as a suprise to market participants. Financial markets were prepared for the LAF corridor over the past several months. We are introducing Standing Deposit Facility (SDF) to provide symmetry to the operating framework of monetary policy. RBI will introduce SDF as the floor for the LAF corridor. SDF to have 3.75 percent interest rate. Access to SDF, MSF will be at the discretion of the banks, Das said.

10:32 AM

RBI's extraordinary liquidity measures have left Rs 8.5 trillion overhang in the system, says Das

RBI's extraordinary liquidity measures have left Rs 8.5 trillion overhang in the system

RBI will now engage in a gradual, calibrated, non-disruptive withdrawal of this excess liquidity over a multi-year period.

10:31 AM

CPI inflation projection

CPI inflation seen averaging 5.7% in FY23. 

Avg. CPI inflation projection:

6.3 % in April-June 2022

5.0%  in July-September 2022

5.4% in October-December 2022

5.1%  in January-March 2023.

10:29 AM

RBI to continue to adopt a nuanced and nimble-footed approach to liquidity management in India, says Das

*RBI to continue to adopt a nuanced and nimble-footed approach to liquidity management in India

 

*Normalisation of LAF corridor should not come as a surprise 

10:29 AM

RBI Monetary policy LIVE updates: 10-year bond yield rises to 7%, the highest since 2019, says Shaktikanta Das

RBI Monetary policy LIVE updates: 10-year bond yield rises to 7%, the highest since 2019, says Shaktikanta Das

10:28 AM

RBI MPC LIVE updates: RBI introduced Standing Deposit Facility to absorb liquidity

RBI MPC LIVE updates: RBI introduced Standing Deposit Facility to absorb liquidity

10:24 AM

Projections of GDP growth and inflation fraught with risk due to ongoing volatility, says RBI

Projections of GDP growth and inflation fraught with risk due to ongoing volatility

 

RBI to use all policy levels to protect Indian economy in fast-changing, dynamic situation