RBI

Announcing the first Monetary Policy for FY22, RBI Governor Shaktikanta Das said that the consumer price index (CPI) inflation for the fourth quarter of the last fiscal has been revised to 5 per cent. He noted that the evolving CPI inflation trajectory is likely to be subjected to both upside and downside pressures.

Accordingly, NABARD will be provided with a special liquidity facility (SLF) of Rs 25,000 crore for a period of one year to support agriculture and allied activities, the rural non-farm sector and non-banking financial companies-microfinance institutions (NBFC-MFIs).

Speaking at the Times Network India Economic Conclave, the Governor said that digital currency is one thing and the cryptocurrencies which are being traded in the market is something else. The statement from the central bank governor gains significance as the government is set to come up with a Bill on cryptocurrency wherein it is likely to ban all such cryptocurrencies.

"The revival of economic activity which has happened should continue unabated going forward. My understanding and our preliminary analysis show that the growth rate in next year, which is at 10.5 per cent which we had given could not require, I repeat, would not require a downward revision," he said.

At present, FPIs can invest in security receipts and debt instruments issued by Asset Reconstruction Companies and debt instruments issued by an entity under the insolvency process and these investments are exempted from the short-term limit and minimum residual maturity requirement under the MTFs for investment by FPIs in corporate bonds.

As part of the additional measures announced by RBI Governor Shaktikanta Das after the MPC meeting, 'New MSME borrowers' have been defined as those who have not availed any credit facilities from the banking system as on January 1, 2021. This exemption will be available for exposures up to Rs 25 lakh per borrower for credit extended up to the fortnight ending October 1, 2021.

The major structural reform was announced by the 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.

In a video statement after the Monetary Policy Committee's bi-monthly meet, Das said that growth in the first half of FY22 is projected to be in the rage of 8.3-26.2 per cent and 6 per cent in the third quarter. The robust growth projection for the coming fiscal comes on the back of the low base in the current financial year, which has been largely hit by the pandemic and the eventual lockdowns.

The RBI had announced the scheme on October 9, 2020 which is available up to March 31, 2021. In addition to the five sectors announced under the scheme on October 21, 2020, 26 stressed sectors identified by the Kamath Committee were also brought within the ambit of sectors eligible under tap TLTRO on December 4, 2020.

Without directly seeking a cut in excise and VAT levies, the RBI Governor said that petroleum product prices have reached historic highs as international crude prices surged in recent months and "the high indirect taxes remain", both in the Centre and states.