Improved Monetary Policy transmission; Repo Rate cut by 115 BPS: Survey
By IANS |
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Fri, Jan 29 2021 17:12 IST |
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New Delhi, Jan. Jan 29 : Monetary policy was significantly eased from March 2020 onwards owing to the unprecedented Covid-19 pandemic and remained accommodative in 2020, said the Economic Survey 2020-21.
The Economic Survey observed the repo rate has been cut by 115 bps since March 2020, with 75 bps cut in first Monetary Policy Committee (MPC) meeting in March 2020 and 40 bps cut in second meeting in May 2020.
Also, Systemic liquidity in 2020-21 remained in surplus while RBI undertook various conventional and unconventional measures to manage liquidity situation in the economy.
Small Finance Banks have greater presence in well-banked States, says RBI report
January 21, 2021
SFBs penetration in the North-Eastern region remains low
Small Finance Banks (SFBs) have greater concentration of branch network in relatively well-banked States, according to an assessment in the Reserve Bank of India’s (RBI) latest monthly bulletin.
While there has been a rapid growth in the branch network of SFBs since their inception, this growth has been markedly concentrated in the Southern, Western and Northern regions, which are known as the relatively well-banked regions in the country, RBI officials Richa Saraf and Pallavi Chavan said in an article in the bulletin.
Letters to the editor dated January 21, 2021
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Promote innovation
With reference to the the report on India Innovation Index compiled by NITI Aayog (January 21), the effort to compile and publish such an index is laudable.
Four of the southern States are among the top five. Why is it so?
Is it the higher literacy rates or English language skills of the population, or the States’ better economic metrics that support innovation? Alongside, Bihar, a State with a rich culture and heritage, is ranked last of 17 major States.
Innovation is a valuable asset in building a sustainable future. While it helps companies succeed, it can also play a role in social spheres such as power generation and distribution in rural areas, water conservation, sustainable agriculture, education, and public health.
Rebooting Economy 60: India in a financial mess of its own making
Misdirected stimulus that relies heavily on liquidity infusion when demand is depressed and incentivising loan defaults by routinely writing off NPAs threaten financial stability and economic recovery
Prasanna Mohanty | January 21, 2021 | Updated 14:56 IST
The Insolvency and Bankruptcy Code (IBC) is unlikely to help much in cleaning up bad loans
The RBI s Financial Stability Report (FSR) released on January 11, 2021 warns of serious financial risks to the economy (described as unintended consequences ) caused by the monetary and fiscal measures pursued to revive the economy.
It says the financial vulnerabilities incipiently pre-pandemic have intensified and pose headwinds to a fuller recovery . Its macro stress tests show that the Gross NPA (GNPA) ratio of Scheduled Commercial Banks (SCBs) is likely to rise from 7.5% in September 2020 to 13.5% by September 2021, under the baseline scenario, and 14.8% un