Compliance burden should not be increased
The monetary authority also clarified that the interest on these repos will be compounded on an annual basis and will be conducted at the prevailing repo rate
Last week, the RBI harmonised guidelines for deferment of date of commencement of commercial operations (DCCO) for projects in non-infrastructure and commercial real estate (CRE) sectors
Retail inflation rose sharply to 7.35 per cent in December 2019.
5% to be paid on already taxed income
The new rules signal a shift away from enhancing asset classification
This means that banks will not be needed to make additional cash reserve ratio against any incremental loans disbursed to the targeted segments
Follow spirit of April 2017 communique with reference to sector
RBI's focus now is on improving transmission and lending
As a push to ensure that retail loans remain growth drivers for banks, RBI has incentivised credit to segments such as automobile, housing and MSMEs
The RBI raised its inflation projection for the six months to Sept to 5-5.4% from 3.8-4% previously, while terming the outlook on price rise as "highly uncertain"
Despite expectations of a moderation in inflation from the elevated level of 7.35% in Dec 2019, the RBI's MPC expects a hardening of prices of other food items, notably those of pulses and proteins
The MPC's action has not surprised as CPI inflation for December left little room for a rate cut
The committee voted 6-0 in favour of the status quo on the interest rates.
A total of 135 companies are scheduled to announce their December quarter earnings today including Eicher Motors, Hero MotoCorp, Sun Pharma, and RITES
Operation Twist is a market term for special open market operations conducted by RBI, where it buys long-term government bonds and sells short-term ones.
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India's GDP is declining, and industrial output pattern remains worrying
Non-food bank credit growth decelerated to 7 per cent in December 2019 from 12.8 per cent in December 2018
The bank is expected to come out of the Reserve Bank of India's prompt corrective action (PCA) framework by March 2020
A rate cut or even a hike can happen, if at all, in the second half of the next financial year