RBI orders banks to maintain 10% incremental CRR
There is surplus liquidity due to the withdrawal of ₹2,000 banknotes, 87% of which have come back into the system as bank deposits, says RBI governor
There is surplus liquidity due to the withdrawal of ₹2,000 banknotes, 87% of which have come back into the system as bank deposits, says RBI governor
Liquidity needs to be modulated in line with the policy action and stance to ensure their full and efficient transmission across the economy, governor Das says.
The central bank unveils liquidity facility of ₹50,000 crore for access to emergency health services, and ₹10,000 crore for small finance banks’ on-lending, among a slew of measures to fight Covid-19.
At its first monetary policy review for 2021, the central bank kept key rates unchanged, while announcing several measures to manage liquidity.
Minutes of RBI’s Monetary Policy Committee meeting highlight that members were divided on the space for future rate cuts.
With most industries having made a hard stop, the ‘productive on-lending’ that the RBI envisages may remain a pipe dream.
Both the benchmark indices closed flat after huge rallies in three consecutive days; they ended the week with over 20% gains from the week’s lows.
Repo rate slashed by 75 bps, governor says will do whatever it takes to mitigate Covid-19 impact; growth outlook for FY21 unclear.
At the last monetary policy meeting of FY20, the central bank kept the interest rate unchanged, with a warning to not read the ‘pause’ continually for its future actions.