Monetary Policy Framework of RBI : As Assessed by Bank of International Sattlement

The monetary policy framework aims at setting the policy repo rate at an appropriate level to achieve the monetary policy objectives based on an assessment of the current and evolving macroeconomic situation. Liquidity management is the operating procedure of monetary policy which envisages modulation of liquidity conditions, aimed at anchoring the WACR to the policy repo rate.

RBI Retail Direct Scheme to bring G-secs within easy reach of common man

A significant milestone in the development of the Government securities (G-sec) market, the Reserve Bank of India-Retail Direct (RBI-RD) Scheme will bring G-secs within easy reach of the common man by simplifying the process of investment. Under the Scheme, retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with the Reserve Bank of India, using an online portal

Master Direction – Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2021.

The draft Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2020 were released for public comments on December 04, 2020. Based on the feedback received from the market participants, the draft Directions were reviewed and have since been finalised. The Master Direction – Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2021 are enclosed herewith.

FINANCIAL AGREEMENT BETWEEN THE UNITED KINGDOM AND INDIA-14/08/1947

The Reserve Bank of India and the Bank of England shall consult together at agreed intervals in order to establish by reference to the best statistical data available to them the net capital movement from India to the other countries of the sterling area, or vice versa as the case may be, resulting from the agreed transfers of capital.

RBI imposed restrictions on Mastercard Asia / Pacific Pte. Ltd from 22/07/ 2021

The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021. Notwithstanding lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data.

RBI keeps Repo rate at 4%-GDP projected at 9.5% in 2021/22-Rs 15,000 cr liquidity support to hospitality sectors

The Reverse Repo Rate too will remain unchanged at 3.35%. He informed that Monetary Policy Committee was of the view that policy support from all sides is required to gain growth momentum and to nurture recovery after it takes root. “Hence policy rate has been left unchanged and accommodative stance has been decided to be continued as long as necessary to revive and sustain growth, while ensuring inflation remains within target” the Governor said while delivering RBI’s bi-monthly monetary policy statement through an online address.

Reserve Bank of India Monetary Policy Report – 07/04/2021

The Indian equity market remained upbeat in October 2020 following the phased unlocking of the economy, Q2 corporate earnings and a slew of liquidity and regulatory measures by the RBI. Domestic equities, however, witnessed cautious trading towards the end of the month due to uncertainty surrounding the outcome of the US presidential elections. In November, the BSE Sensex gained by 11.4 per cent, supported by FPI inflows, positive developments on the vaccine and the Government’s approval of a ₹1.5 lakh crore production-linked incentive (PLI) scheme for 10 manufacturing sectors.

RBI Cautions against unauthorised Digital Lending Platforms

There have been reports about individuals/small businesses falling prey to growing number of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner. These reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers.

RBI draft Circular on Declaration of Dividend by NBFCs-9/12/2020

Core Investment Company (CIC) should have Adjusted Net Worth (ANW) of at least 30% of its aggregate risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items for last 3 years, including the accounting year for which it proposes to declare dividend.

RBI issued Statement on Developmental and Regulatory Policies-4/12/2020

Statement sets out various developmental and regulatory policy measures to i) enhance liquidity support to targeted sectors of the economy with linkages to other sectors; (ii) deepen financial markets; (iii) conserve capital among banks and NBFCs through regulatory initiatives; (iv) strengthen supervision through the audit function; (v) facilitate external trade by improving ease of doing business for exporters; and (vi) upgrade payment system services so as to expand financial inclusion and improve customer service.