Highlights of RBI monetary policy announcements
Highlights of RBI monetary policy announcements RBI keeps policy rate unchanged for fifth time in a row; repo at 4 pc Economic growth projection for current fiscal retained at 10.5 pc RBI to maintain accommodative monetary policy stance to support growth, keep inflation at targeted level Says recent surge in COVID-19 infections has created uncertainty over economic recovery, focus be on containing virus spread Projects 26.2 pc and 8.3 pc growth in June and September quarters; 5.4 pc and 6.2 pc in December and March quarters respectively Retail inflation projection revised to 5 pc in March quarter 2020-21 Projects retail inflation at 5.2 pc in June and September quarters
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RBI to set up panel to undertake review of ARCs.
To facilitate smooth functioning of Asset Reconstruction Companies (ARCs), the Reserve Bank of India (RBI) on Wednesday (April 7) decided to set up a panel to undertake a comprehensive review of the working of such institutions. In the latest Budget, Union Finance Minister Nirmala Sitharaman announced setting up of ARC and Asset Management Company to tackle stressed assets.
After enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act in 2002, regulatory guidelines for ARCs were issued in 2003 to enable development of this sector and to facilitate smooth functioning of these companies.
Staying the course on inflation targeting regime is welcome - PAUL NORONHA×
RBI may need a much larger G-sec buying programme to meet the objectives of government’s borrowing plan
In its first meeting of 2021-22, the RBI’s Monetary Policy Committee kept unchanged the policy repo rate at 4 per cent and also said that the stance of the monetary policy will remain accommodative. This outcome of the MPC’s three-day long meeting was universally anticipated, particularly in the light of the recent vigorous surge in the Covid-19 caseload in Maharashtra and a few other States. The stock market responded positively while the G-sec prices rose marginally after the policy.
Rebooting Economy 66: Is India facing credit deprivation to warrant corporation banks?
RBI s database, reports and other evidence show India is credit surplus; large industrial houses have high debt stress, and that easy credit poses serious macro-financial risks to the economy
Prasanna Mohanty | February 10, 2021 | Updated 18:39 IST
What compromises the Indian economy further is India s repeated failure to resolve stressed assets over the past few decades
In November 2020, an internal working group (IWG) of the Reserve Bank of India (RBI) recommended that India s large industrial houses be allowed to run banks to increase credit-to-GDP ratio from the current level of 50% to more than 150%, in line with many developed economies, for higher growth. Now Prof. Arvind Panagariya, former Niti Aayog vice-chairman, is claiming that India faces acute problem of credit deprivation to support the same cause.
Insolvency resolution: The IBC story so far and the way forward
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Last Updated: Jan 22, 2021, 11:56 AM IST
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Solution: SEBI, IRDAI and RBI need to enable legislations and/or guidelines jointly to avoid blind spots.
Insolvency and Bankruptcy Code 2016, (IBC) in a span of four years, has turned out to be the proverbial giant in the annals of Indian corporate law. The legislation catapulted India in World Bank’s Doing Business rankings from a lowly 142 in 2014 to 63 in 2019. Though not a recovery mechanism, IBC resulted in mean recoveries of 44% for financial creditors in comparison to 24% from Debt Recovery Tribunals (DRT), SARFAESI Act and Lok Adalats combined, for financial years 2018-2020.