The Reserve Bank of India (RBI) has decided to give retail investors direct access to the government securities market. The major structural reform was announced by RBI Governor Shaktikanta Das on Friday. According to Das, India will join a select group of countries offering such facility to investors. The new arrangement, Retail Direct, will allow direct access to retail investors via the RBI. This will allow such investors to open Gilt account with the apex bank.
RBI Monetary Policy: The Reserve Bank has announced that resident individuals can make remittances to international finance centres for purposes of investing in securities issued by non-resident companies. Watch the video.
SLR holdings in HTM category: The RBI said in order to provide certainty to the market participants in the context of the borrowing programme of the centre and states for 2021-22, it has now been decided to extend the dispensation of enhanced HTM of 22 percent up to March 31, 2023, to include securities acquired between April 1, 2021 and March 31, 2022.
Most analysts had expected the RBI to cut interest rates, although they were unsure of the quantum following an unconventional 35 basis-point easing last time.
Numbers are paramount, what our assessment of the incoming data is, and how we see the incoming data, Das said
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SBI reduced its marginal cost of funds-based lending rate from 8.4% to 8.25%
Guidance on systemic liquidity conditions will be crucial, as the pace of transmission of policy rates depends to a large extent on the level of liquidity
In the last policy meet, the RBI hiked repo rate by 25 basis points to 6.50 per cent, for the second time in a row.
The RBI said on Wednesday it would allow all MSMEs to pay their dues to banks and NBFCs up to 180 days after the due date without these being classified as bad loans
Move to value state bonds at market price will wipe out valuation gains of banks used to hide treasury losses
The move is largely being perceived as a move to destabilise the cooperative sector
Banks will have to register more losses on their books in the first three quarters of the financial year due to the regulator's move to allow spreading of MTM losses over four quarters
The RBI's monetary policy is determined by the nominal anchor that has been given by a legislative process, which is the consumer price index, the RBI Governor said
The central bank's April policy tone was dovish and it had actually lowered inflation forecasts for the first and second half of 2018-19
If the state development loans (SDL) are rated, the margin requirement would be set at 1 per cent lower than other SDLs for the same maturity buckets
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A wait-and-watch stance by the MPC will also support the government bonds market